'I had no idea this place existed': New financial support center opens to help small merchants avoid loan sharks

Incheon's Seohaee district gets nation's 53rd inclusive finance center

Debt restructuring, policy loans and startup funds available under one roof

Kim Eun-kyung urges merchants to avoid loan sharks, points to Miso Finance support

Credit Recovery Commission, Korea Inclusive Finance Agency aim to expand to 100 centers

Kim Eun-kyung, chairperson of the Credit Recovery Commission and president of the Korea Inclusive Finance Agency, tours the newly opened Seohaee Inclusive Finance Support Center in Incheon's Seohaee district on Friday and speaks with staff. [Credit Recovery Commission]

"I used to travel over an hour to get debt-restructuring counseling — and now there's a center right near here?"

The owner of a pet supply shop at Jeongseonjin Jungang Market in Incheon's Seohaee district welcomed the news Friday of a newly opened inclusive finance support center in the area. The merchant said financial difficulties since the COVID-19 pandemic had made debt restructuring necessary, but the more-than-one-hour commute to the nearest existing center had made it hard to attend counseling and financial education sessions. The opening of the nation's 53rd inclusive finance support center in Seohaee district is expected to improve residents' access to financial assistance.

The Credit Recovery Commission and the Korea Inclusive Finance Agency held an opening ceremony Friday for the Seohaee Inclusive Finance Support Center on Bongojae 3-ro in Incheon's Seohaee district. Attendees included Kim Eun-kyung, chairperson of the Credit Recovery Commission and president of the Korea Inclusive Finance Agency; Nam Yeong-hui, Incheon's vice mayor for balanced development; Woori Bank Executive Vice President Seong Si-cheon of the management planning group; Lee Bu-hyeon, chairman of the Incheon Credit Guarantee Foundation; and Kim Hyo-hui, head of the Financial Supervisory Service's Incheon branch.

The Credit Recovery Commission holds an opening ceremony for the Seohaee Inclusive Finance Support Center in Incheon's Seohaee district on Friday. [Credit Recovery Commission]

The new center has 10 counseling windows and is jointly operated by three institutions: the Credit Recovery Commission, the Korea Inclusive Finance Agency and the Woori Miso Finance Foundation. The Credit Recovery Commission handles debt restructuring, personal rehabilitation and bankruptcy filings, as well as support for victims of illegal private lending. The Korea Inclusive Finance Agency provides counseling on policy-backed financial products such as Haetsal Loan and connects clients with employment and welfare services, while the Woori Miso Finance Foundation offers startup and operating loans to small business owners and the self-employed.

At the opening ceremony, Kim said the two institutions often perform overlapping functions yet operate through separate support systems. "The two agencies do similar work, but their services are too fragmented," Kim said. "Just as a patient first sees a doctor for a diagnosis, clients should receive an initial consultation first, and then be connected — all in one place — to everything from debt restructuring and policy loans to welfare and employment support." Kim added that "finance must save lives," underscoring the need for a comprehensive support system that goes beyond financial assistance to help people achieve economic independence.

The agency also plans to significantly expand its network of inclusive finance centers. Kim said the center that opened Friday is the 53rd nationwide, and that the goal is to grow the total from 50 at the time of taking office to 100 by the end of the term. There are also plans to extend the model of combined centers — which integrate bank branches with existing centers — to Chuncheon, North Chungcheong Province, Jeju and North Jeolla Province.

Local officials also expressed their commitment to cooperation. "This center can serve as a lifeline for ordinary residents in western Incheon," Nam said. "The city of Incheon will do everything it can to support it." Lee said the foundation's work supporting small business owners with limited collateral overlaps significantly with inclusive finance support, adding that the two sides would work through practical consultations to find ways to collaborate.

Credit Recovery Commission counselor Park Hyeon-ja (first from left), Commission Chairperson Kim Eun-kyung (second from left), Financial Services Commission Chairman Lee Eok-won (third from left) and actor Jeong Ae-ri hold up the number "1375" with their hands at the commission's call center in Yeongdeungpo-gu, Seoul, on Thursday morning. [Credit Recovery Commission]

After the opening ceremony, Kim visited the nearby Jeongseonjin Jungang Market to personally inform merchants about available support programs. Going shop to shop and handing out Korea Inclusive Finance Agency and Credit Recovery Commission brochures, Kim told merchants: "Never resort to loan sharks. Contact the Korea Inclusive Finance Agency and, depending on your situation, we can provide support such as Miso Finance loans and arrange debt restructuring. We've opened a center near Gahyeon Station, so please come in for counseling if you need it." The outreach drew strong interest from merchants and market visitors alike — 160 dishcloths prepared as giveaways were gone within an hour.

The visit also laid bare the hardships caused by the economic slowdown. A merchant in the 60s who runs a butcher shop at the market said sales had fallen by about a third this year. "It's been especially bad this year — I'd say sales are down by about a third," the merchant said. "With rent and the cost of restocking, it's a struggle just to break even, so I desperately need funds." The merchant added: "I had no idea an organization like this existed. For ordinary people like us, it's a real reassurance. I want to tell my son who runs a business about it too."

A merchant in the clothing business asked how to apply for the Fresh Start Fund, saying business had been slow and the program had caught their attention. A Credit Recovery Commission staff member explained the eligibility requirements and said detailed counseling was available at the center — about 10 minutes from the market — and that appointments could be made by calling 1375. "I'll head over right away," the merchant said.

snsd@heraldcorp.com