The Korea Inclusive Finance Agency supplied over 160 billion won in funds through microfinance to small-scale self-employed individuals, youth, and financially vulnerable groups in the first half of this year. The number of loans extended reached a record high for the first half, and with financial companies and corporations successively contributing additional resources, the support foundation for policy-based inclusive finance is expected to expand further.

■ First-Half Supply Reaches 161.2 Billion Won... Up 9.1% Year-on-Year

The Korea Inclusive Finance Agency announced on the 7th that the microfinance supply in the first half of 2026 was tallied at 161.24 billion won. Compared to 147.85 billion won in the same period last year, this represents an increase of 13.39 billion won, or 9.1%. The number of loans reached an all-time high of 16,359 for a first-half period. This is interpreted as the financial needs of low-income individuals—who have difficulty using mainstream financial institutions such as banks due to low credit scores or income conditions—being channeled into microfinance.

Three new products launched in March also continued to see supply. A total of 11.4 billion won was provided under the 'Youth Future Bridge Loan' for young people, while the supply for the 'Youth Operating Funds Loan' amounted to 6.14 billion won. Loans for livelihood support targeting financially vulnerable groups reached 8.98 billion won.

■ What Is Microfinance?

Microfinance is a policy-based inclusive finance product that supports startup, operating, and livelihood funds for small-scale self-employed individuals, youth, and financially vulnerable groups who have difficulty accessing loans from general financial institutions due to low credit scores and income. It is currently supplied through 11 Microfinance Foundations and 27 regional corporations nationwide, established with donations from corporations and banks.

Corporate foundations include Samsung, LG, Hyundai Motor, SK, Lotte, and POSCO, while Woori, KB, Shinhan, Hana, and IBK are participating in foundation operations from the banking sector. General donations and the returns on dormant deposits held by the Korea Inclusive Finance Agency are also utilized as key funding sources for microfinance.

■ Financial Sector and Corporations Contribute Additional 700 Billion Won... Support Base Expands

The total additional donation amount pledged by the financial sector and corporations stands at 700 billion won. Starting with Shinhan Financial Group in February, Woori Financial Group, KB Financial Group, Hana Financial Group, and NH Financial Group each announced plans to contribute 100 billion won, bringing the total financial sector donations to 500 billion won. NH Financial Group plans to establish a new NH Microfinance Foundation within this year. Samsung Group also announced in July a 200-billion-won donation to support the self-reliance of small-scale self-employed individuals.

Kim Eun-kyung, President of the Korea Inclusive Finance Agency, said, "Microfinance is a Korean-style microcredit and a representative model of productive finance created together with the financial sector and corporations. Through support for small-scale self-employed individuals, youth, and vulnerable groups, we will realize finance that saves people."

■ How to Use and Related Support

Those wishing to use microfinance can reserve a consultation through the 'Inclusive Finance Connect' app and then visit a nearby branch. For those who have difficulty using online services, consultation and branch guidance are available through the Inclusive Finance Call Center at 1397.

If exposed to illegal private lending, individuals can report to the Financial Supervisory Service to receive necessary assistance. Those experiencing difficulties due to excessive debt can receive consultation and support through the Korea Inclusive Finance Agency or the Credit Counseling and Recovery Service. Loan agreements with annual interest rates exceeding 60% are invalid in both principal and interest.

[This article was partially assisted by AI.]