Seongmin Financial Agency Expands Small Loan Guarantees to 420 Billion Won Annually

The Seongmin Financial Agency (Seonggeumwon) is launching a new small loan guarantee program through the Credit Recovery Committee to provide urgent financial support to vulnerable borrowers who are diligently managing their debt adjustments.

Starting June 30, Seonggeumwon announced the implementation of the 'Credit Recovery Committee Small Loan Guarantee.' This follows the amendment of the Enforcement Decree of the Act on Supporting Financial Lives of Citizens in April, which allows Seonggeumwon to offer credit guarantees to users of the Credit Recovery Committee's small loan guarantees.

With this new program, the supply scale of small loan guarantees from the Credit Recovery Committee is expected to expand to a maximum of 420 billion won this year.

Previously, small loan guarantees from the Credit Recovery Committee were only provided through SGI Seoul Guarantee. However, with Seonggeumwon's new participation as a guarantee institution, a foundation has been established to quickly respond to the urgent financial needs of borrowers who are faithfully repaying their debts.

The eligibility criteria have also been broadened. In addition to users of the Credit Recovery Committee's debt adjustments and individual rehabilitation through the courts, those utilizing Seonggeumwon's own debt adjustments and financial institutions' debt adjustments can now receive support. Borrowers who have diligently repaid their debts for more than six months after their debt adjustment was confirmed, or those who have fully repaid their debts within the last three years, are eligible to apply.

Kim Eun-kyung, head of Seonggeumwon, stated, "It is essential to strengthen financial support so that vulnerable groups who are diligently managing their debt adjustments do not face difficulties in recovering due to temporary cash shortages. We will continue to expand tailored policies and financial support for economically vulnerable groups to ensure their economic independence and stable recovery."