After Samsung, one of the world’s largest conglomerates by revenue, and Woori Financial Group, a Seoul-based financial services holding company, recently opened branches of the Miso Microcredit Foundation, other Korean conglomerates have begun to follow suit. The Miso (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.
Other conglomerates, including SK Group, Hyundai-Kia Automotive Group, LG, Lotte and Posco, have agreed to participate in the government-inspired microcredit lending program. SK Group, one of the largest conglomerates in South Korea, has recently opened a branch of the foundation. The branch, based in Seoul, will provide KRW 200 billion (USD 169 million) in loans over the next 10 years. Low-income entrepreneurs can apply for loans of up to KRW 50 million (USD 43,200) with an annual interest rate of 4.5 percent. [1] Hyundai-Kia Automotive Group, whose branch is located in Jegi-dong, Seoul, and LG group, whose branch is located in Paju, Gyeonggi, will each provide KRW 200 billion (USD 173 million) over the next decade. [1] Lotte Group opened a branch in Seoul with total of KRW 5 billion (USD 4.3 million). Posco, another large conglomerate, opened a branch recently in Seoul with similar financing, although specific information was not made available.
By: Jay Kumar, Research Assistant
Additional Resources:
1. JoongAng Daily: “Conglomerates joining microcredit movement” http://joongangdaily.joins.com/article/view.asp?aid=2914432
2. MICROCAPITAL BRIEF: Samsung Group Opens First Branch of $860m Miso Microcredit Foundation in Korea: https://www.microcapital.org/microcapital-brief-samsung-group-opens-first…
3. Samsung: http://www.samsung.com/us/aboutsamsung/index.html
4. Hyundai-Kia Automotive Group: http://www.hyundai-kiamachine.com/
5. LG group: http://www.hyundai-kiamachine.com/
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