Korean conglomerate, Samsung Group, has announced that it will double its 2010 target microcredit loan commitment of KRW 30 billion (USD 25.7 million) to KRW 60 billion (USD 51.4 million) to the Korean, government-led microfinance institution (MFI) Smile Microfinance Bank (SMB, also known as Miso Microcredit Foundation).
Samsung and other Korean private sector companies such as Hyundai-Kia, SK, LG, Posco and Lotte committed KRW 2 trillion (USD 1.6 billion) over 10 years to the state sponsored MFI, as reported by MicroCapital June 23, 2010.
Under the SMB umbrella, major private companies have opened their ‘own’ locations of SMB. The Korean Herald states that Samsung plans to use part of the increased funding to expand its number SMB branches from the current 7 to 13 by the end of September 2010.
As of April 2010, SMB’s 38 total branches had lent KRW 7 billion (USD 5.9 million) to 953 borrowers.
About Smile Microfinance Bank (SMB):
Launched in December 2009, Smile Microcredit Bank (SMB) is a government-led microfinance program also known as “Miso Microcredit Foundation.” SMB provides unsecured loans to low-income households through partnerships with private sector companies such as: Samsung Group, Hyundai-Kia, SK, LG, Posco and Lotte. As of April 2010, SMB’s 38 total branches had lent KRW 7 billion (USD 5.9 million) to 953 borrowers.
By Matthew Fox, Research Assistant
Sources and Additional Resources
Korean Herald: Samsung Expands Microfinance, 10 August 2010: http://www.koreaherald.com/business/Detail.jsp?newsMLId=20100810000677
MicroCapital Brief: South Korean Smile Microcredit Bank (SMB) Successfully Lobbies for Regulation Changes and Alters Loan Practices, 21 May 2010: https://www.microcapital.org/microcapital-brief-south-korean-smile-microcredit-bank-smb-successfully-lobbies-for-regulation-changes-and-alters-loan-practices/
MicroCapital Brief: Korean Microfinance Program, Smile Microcredit Bank (aka ‘Miso Microcredit Foundation’) Stymied by Credit Rules, 19 January 2010: https://www.microcapital.org/microcapital-brief-korean-microfinance-program-smile-microcredit-banks-aka-miso-microcredit-foundation-stymied-by-credit-rules/
MicroCapital Universe: Smile Microfinance Bank (SMB): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Smile+Microcredit+Bank+(SMB)
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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