Samsung Group has opened the first branch of the Miso Microcredit Foundation. The Miso Microcredit Foundation, also known as the “Smile Microcredit Foundation,” is a government-led microcredit lending program in Korea that plans to raise KRW 2 trillion (USD 1.69 billion) over the next 10 years. KRW 1 trillion (USD 848 million) has been donated from six non-financial companies, including Samsung Group, Hyundai-Kia, SK, LG, Posco and Lotte; and another KRW 1 trillion (USD 844,000) has been pledged from 18 financial institutions including Kookmin, Woori, Shinhan, Hana and Industrial Bank of Korea, as well as government-run institutions such as the Korea Development Bank, Daegu Bank and Busan Bank.
MicroCapital previously reported that the 18 financial institutions had donated a total of KRW 255.5 billion (USD 221.4 million) to the foundation and plan to invest an additional KRW 700 billion (USD 603.9 million) over the next ten years. The funds for this investment will come from “’dormant deposits’—small accounts that have been idle for years at the contributing banks.”
Under the foundation, each contributor is allowed to manage its donation through its own Smile Microcredit Branch. The foundation expects to open 20 to 30 branches by May 2010 and up to 200 in the next two to three years.
By: Stefanie Rubin, Research Assistant
Additional Resources:
Source Article: JoongAng Daily: “‘Smile’ Bank Opens Today,” http://joongangdaily.joins.com/article/view.asp?aid=2913969
MicroCapital Universe: Miso Microcredit Foundation (Smile Microcredit Foundation): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Miso+Microcredit+Foundation+%28Smile+Microcredit+Foundation%29
MICROCAPITAL BRIEF: Eighteen South Korean Banks Donate $221m to the Microfinance Foundation, a South Korean Government Program: https://www.microcapital.org/microcapital-brief-eighteen-south-korean-banks-donate-221m-to-the-microfinance-foundation-a-south-korean-government-program/
The Korea Herald, “Korea Set to Provide Microcredit for Low-Income Households,” http://www.koreaherald.co.kr/NEWKHSITE/data/html_dir/2009/12/15/200912150084.asp
The Korea Herald, “Microfinance Raises Both Hopes, Doubts,” http://www.koreaherald.co.kr/NEWKHSITE/data/html_dir/2009/10/02/200910020007.asp
Samsung: About Samsung: http://www.samsung.com/us/aboutsamsung/index.html
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