The program targets people ages 19 to 39 who have difficulty using financial services or are undergoing debt restructuring, helping them rebuild credit and re-enter the formal financial system. KakaoBank first launched the project last year by donating 1 billion won to the Social Solidarity Bank to create a fund to support youth in financial distress.
Under this year’s agreement, the Social Solidarity Bank will use KakaoBank’s donation to offer ultra-low-interest loans at an annual rate of 1%: living-expense loans of up to 3 million won and refinancing loans for high-interest debt of up to 5 million won. It will also provide financial checkups and financial education. The Credit Recovery Committee will identify and connect young people who need support.
A KakaoBank official said the bank wants to help young people facing economic hardship “find hope again and stand on their own,” adding it will continue to pursue inclusive finance for vulnerable groups.
* This article has been translated by AI.
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