South Korea's Busan Bank offers low‑interest loan to construction workers

The Construction Workers' Mutual Aid Association has partnered with BNK Financial Group and the two major construction labour unions – the Korean Confederation of Trade Unions and the Democratic Labor Federation – to launch an inclusive‑finance programme for day‑labour construction workers. Under the agreement, Busan Bank and Gyeongnam Bank will provide a dedicated credit‑loan product of up to KRW 35 million with a maximum annual interest rate of 5.5 percent. Applicants can rely on their retirement‑fund contribution records rather than traditional income documents, easing the proof‑of‑income burden that has limited access to mainstream banking.

The loan, announced on 31 May, is the first concrete action of the “construction‑worker inclusive finance” agreement and aligns with government efforts to expand credit access for low‑income and vulnerable groups. It will be available at all Busan Bank branches initially, with plans to extend to mobile‑banking channels and other outlets.