“We expect the loan growth to double or triple over the next six months and for Korea to have the world’s largest microfinance program by next year,” says Kwon Hyouk Se, vice chairman of the Financial Services Commission in Korea. [1]
As a result of the government-supported Smile Microcredit Bank initiative which commenced in December 2009, South Korea expects microfinance loans to increase significantly this year. Samsung Group, Hyundai Motor Group and other businesses have committed KRW 2 trillion (USD 1.6 billion equivalent) over 10 years to provide microfinance, as reported by MicroCapital on December 22, 2009.
Korea intends to spread the benefits of financial services to all social classes by encouraging the provisioning of microloans to self-employed, low-income earners to ensure that they have access to capital for investment in their businesses.
By Jennifer Shevock, Research Associate
About Smile Microcredit Bank:
Established in December 2009, the Smile Microcredit Bank (SMB) is a state-led program which provides unsecured loans to low-income households through partnerships with the private sector.
Sources and Additional Resources:
[1] “Microfinance loans may triple this year” June 16, 2010. http://www.koreaherald.com/business/Detail.jsp?newsMLId=20100616000673
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 BRIEF: “South Korean Smile Microcredit Bank (SMB) Successfully Lobbies for Regulation Changes and Alters Loan Practices” May 21, 2010. https://www.microcapital.org/microcapital-brief-south-korean-smile-microcredit-bank-smb-successfully-lobbies-for-regulation-changes-and-alters-loan-practices/
MICROCAPITAL UNIVERSE: 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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