South Korean financial institutions receive adjusted debt limits and new loan programs

South Korean financial authorities have redistributed household debt limits across various sectors. Following the banking sector, mutual finance institutions such as Saemaul Geumgo and Shinhyup have been allocated additional limits. Saemaul Geumgo received approximately 300 billion won, while Shinhyup was allocated between 100 billion and 200 billion won. This adjustment follows the decision to raise the annual household debt growth target from 1.5% to 3.0%.

In a separate move toward inclusive finance, Saemaul Geumgo announced a 1.1 trillion won special guarantee loan program. This initiative targets social enterprises, cooperatives, and local small business owners. The program is supported by a 100 billion won contribution from the Saemaul Geumgo Federation to the Korea Credit Guarantee Foundation, which will issue guarantees to facilitate the lending process. This is part of the ‘Vision 2030’ plan to ensure that microfinance accounts for over 80% of the institution's total loans by 2030.