4.5% interest rate, 10-year term, 1 million won in support
The government plans to launch a "Minsaeng-jikim" (people's livelihood protection) microloan next year, offering low-income borrowers who struggle to access mainstream financial services a low-interest (4.5%), long-term (10-year), small-sum loan of 1 million won.
Deputy Prime Minister and Minister of Economy and Finance Lee Hyung-il announced the plan Thursday during a visit to the Gwangjin-gu Inclusive Finance Support Center in Seoul.
![Deputy Prime Minister and Minister of Economy and Finance Lee Hyung-il presides over a policy roundtable on inclusive finance at the Gwangjin Inclusive Finance Support Center in Seoul on Thursday. [Yonhap]](https://wimg.heraldcorp.com/news/cms/2026/10/29/rcv.YNA.20261029.PYH2026102915660001300_P1.jpg)
"Inclusive finance for ordinary people must serve as a breathing space to hold on a little longer and a stepping stone to get back on their feet," Lee said, adding that the government would work to improve financial access for vulnerable borrowers.
Lee also sat down at a counseling window to take part as a "one-day financial counselor." Addressing the center's staff, Lee said, "This is the first door that people on the edge of a cliff knock on," and expressed gratitude, noting that "a single word of counsel can be the strongest support."
The IBK Microfinance Foundation attended the event and shared its plans to expand inclusive finance. Industrial Bank of Korea plans to contribute up to an additional 100 billion won to its microfinance fund going forward.
Combined with earlier pledges from the five major financial holding companies, Samsung and Industrial Bank of Korea, total microfinance contributions announced to date amount to around 800 billion won ($599 million), the Ministry of Economy and Finance said.
Lee praised the efforts of companies and financial institutions to expand inclusive finance and expressed hope that such efforts would continue to grow.
y2k@heraldcorp.com
