10 billion won committed to aid some 10,000 moneylender users

Borrowers with 6+ months of on-time payments eligible for 50% interest rebate

Payments disbursed through Social Solidarity Bank alongside financial education

KB Kookmin Bank headquarters [KB Kookmin Bank]
KB Kookmin Bank headquarters [KB Kookmin Bank]

KB Kookmin Bank announced Wednesday it will launch the "Credit Build Up" interest support program to ease the financial burden on some 10,000 low-credit borrowers who have kept up with their moneylender loan payments without falling behind. The bank will commit 10 billion won ($7.46 million) to cover up to half of the interest each borrower paid over a one-year period, capped at 1 million won per person.

The program targets borrowers who, due to low credit scores, have been unable to access mainstream financial institutions such as banks or savings banks and have turned to licensed moneylenders instead. The aim is to reduce the interest burden on customers who have repaid their loans faithfully and help them rebuild their credit over the long term.

To qualify, borrowers must have taken out loans from moneylenders participating in the program — selected from among firms the Financial Supervisory Service has designated as top-rated consumer-finance moneylenders. They must have repaid principal and interest without any delinquency for at least six months and must also meet separate eligibility requirements related to income and other criteria.

Those selected will receive a rebate equal to 50 percent of the interest they paid on time for up to one year, subject to the 1 million won per-person cap. Participants must also complete an online financial education course provided by the Financial Supervisory Service and the KB Financial Group Public Benefit Foundation.

KB Kookmin Bank will donate the full 10 billion won to Social Solidarity Bank, which will work with the participating moneylenders to screen applicants and disburse the funds. A key feature of the design is that the support goes directly to borrowers rather than to the moneylenders themselves.

Based on average moneylender interest rates and the size of the fund, the bank estimates about 10,000 people will benefit. The total outstanding loan balance held by those borrowers is expected to reach around 100 billion won.

Alongside the interest support, the bank plans to provide financial education to help borrowers build a track record of regular repayments and improve their credit scores. The goal is to eventually enable them to access mainstream financial institutions such as banks and savings banks.

"We hope this program will break the vicious cycle in which people struggling with both loan repayments and living expenses are forced to borrow emergency funds again, preventing exposure to illegal private lending and serving as a stepping stone back to stable financial lives," a KB Kookmin Bank official said. "We will continue to expand our inclusive finance support across a wide range of areas."

Meanwhile, KB Kookmin Bank has also introduced a mobile video sign-language consultation service for customers who are deaf or hard of hearing. The service extends sign-language consultations — previously available only through dedicated video phones — to the KB Star Banking app, allowing customers to receive financial advice on their smartphones without any additional device.


rim@heraldcorp.com