Financial Institutions' Contributions to Policy-Based Microfinance Hit Record High

[Economy 365]

Contributions made by financial institutions to fund policy-based microfinance have neared 1.5 trillion KRW over the past four and a half years.

Totaling 1.4797 trillion KRW from 2022 to June of this year, last year's contributions reached 439.6 billion KRW, marking a record high with a 91.5% increase compared to 2022.

The banking sector accounted for 48% of the total, with KB Kookmin Bank, Shinhan Bank, and NH Nonghyup Bank contributing the largest amounts in that order.

During the same period, the supply of policy-based microfinance grew by only 24.2%.

With the contribution rates raised and subrogation rates for certain products also increasing, the financial sector's burden is expected to grow further.

*This article was produced with AI audio.
※ Please note: This article was translated by AI and may contain errors.