South Korean banks to extend $3.1b in loans to low-income citizens

They can expect to secure loans worth up to around $26,000 (KRW30m) per person.

South Korean banks plan to extend $3.1b (KRW3.5t) in loans to low-income people with lower creditworthiness this year, reports Yonhap News Agency, according to a plan unveiled by the Financial Supervisory Service (FSS).

This is expected to help them cope with the fallout resulting from the ongoing pandemic, the financial watchdog said.

The 2021 plan represents a rise of KRW100b won compared with KRW3.4t initially planned for last year, the FSS added.

Local banks are currently running a loan program that extends lending worth up to KRW30m per individual to low-income Koreans with creditworthiness that are in the bottom 20%.