The South Korean Unification Ministry recently launched a microfinance scheme in collaboration with Smile Microcredit Bank to provide business loans to North Korean refugees.Under the microfinance scheme, defectors can receive loans as well as business consulting services. The loans are intended to assist the refugees’ adaptation to the South Korean capitalist economy so they can live more stable economic lives.
The applicant screening process will commence in August at which point potential loan recipients will be reviewed by the Unification Ministry prior to being recommended to Smile Microcredit Bank.
Established in December 2009, Smile Microcredit Bank has received commitments of KRW 2 trillion (USD 1.6 billion equivalent) to be disbursed over 10 years from Samsung Group, Hyundai Motor Group and other major Korean corporations, as reported by MicroCapital on December 22, 2009.
By Jennifer Shevock, Research Associate
About Unification Ministry:
The Unification Ministry is a branch of the South Korean government that is responsible for working toward the reunification of Korea. Its main priorities include coordinating South Korea’s policy toward cooperation and communication with North Korea, improving North Korean humanitarian conditions and providing education on unification issues.
About Smile Microcredit Bank:
Established in December 2009, the Smile Microcredit Bank (SMB) is a South Korean state-led program which provides unsecured loans to low-income households through partnerships with the private sector. Smile Microcredit Bank has received commitments of KRW 2 trillion (USD 1.6 billion equivalent) to be disbursed over 10 years from Samsung Group, Hyundai Motor Group and other major Korean corporations
Sources and Additional Resources:
“S.Korea launches loan scheme for N.Korean refugees” July 6, 2010. http://www.mysinchew.com/node/41322
“New Financial Support for N. Korean Defectors – Self-Employment Program” July 7, 2010. http://rki.kbs.co.kr/english/news/news_commentary_detail.htm?No=19211
MICROCAPITAL BRIEF: “Samsung Group Opens First Branch of $860m Miso Microcredit Foundation in Korea” December 22, 2009. https://www.microcapital.org/microcapital-brief-samsung-group-opens-first-branch-of-860m-miso-microcredit-foundation-in-korea/#more-4215
MicroCapital Universe: Unification Ministry: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Unification+Ministry
MicroCapital Universe: Smile Microcredit Bank: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Smile+Microcredit+Bank+%28SMB%29
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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