Posted on June 17, 2010 - by Will

Korea Herald: Microfinance loans may triple this year

Microfinance loans in Korea may triple this year as the government seeks to share the benefits of economic recovery with all social classes, said Kwon Hyouk Se, vice chairman of the Financial Services Commission.

Samsung Group, Hyundai Motor Group and other businesses and banks have committed 2 trillion won ($1.6 billion) over 10 years to provide microfinance loans, Kwon said Tuesday in an interview in Seoul.

Korea is using microfinance loans to ensure self- employed people earning low incomes can secure funds to run their businesses if they are unable to borrow through traditional channels, he said. A state-backed microfinance initiative that began in December has already generated 91 billion won in loans, according to Kwon.

“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,” he said. “The program allows companies and banks, the first beneficiaries of an economic recovery, to share their benefits with the less fortunate.”

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