The Seonggeumwon (Korea Inclusive Finance Agency) reported that it supplied over 161.2 billion won in microfinance to small business owners, youth, and financially vulnerable groups in the first half of 2026.
According to the agency, the total amount of microfinance provided in the first half of the year reached 161.24 billion won, an increase of 13.4 billion won (9.1%) from 147.85 billion won during the same period last year.
Microfinance is a policy financial product aimed at small business owners, youth, and financially vulnerable groups who have difficulty accessing traditional financial institutions due to low credit scores and income. It is provided through 11 microfinance foundations established with donations from corporations and banks, as well as 27 regional corporations nationwide.
The number of microfinance transactions in the first half of the year reached 16,359, marking the highest level ever recorded for a half-year period. This increase is attributed to rising demand for policy financing among small business owners and low-credit individuals, who are finding it increasingly difficult to access traditional financial services due to economic downturns and stricter lending criteria.
Three new products launched in March provided 26.52 billion won in funding. The 'Youth Future Connection Loan' and 'Youth Operating Fund Loan' for young people accounted for 11.4 billion won and 6.14 billion won, respectively. Additionally, 8.98 billion won was allocated for living expenses for financially vulnerable groups.
Furthermore, additional contributions from the financial sector and corporations are ongoing. Following the third 'Inclusive Finance Transformation' meeting held in March, the financial sector and corporations pledged a total of 700 billion won in additional microfinance donations. Shinhan, Woori, KB, Hana, and NH Financial Group each committed 100 billion won, totaling 500 billion won. NH Financial Group plans to establish the NH Microfinance Foundation within the year. Last month, Samsung Group also announced a 200 billion won donation to support the practical independence of small business owners.
Kim Eun-kyung, head of the Seonggeumwon, stated, "Microfinance is a representative model of productive finance and a Korean-style microcredit created through collaboration between the financial sector and corporations. We will expand support to help small business owners, youth, and financially vulnerable groups achieve real independence."
* This article has been translated by AI.
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