Residents in rural areas without bank branches will soon be able to apply for loans from the four major commercial banks at post office counters.

The Korea Post under the Ministry of Science and ICT announced today (July 13) that it has signed a business agreement with KB Kookmin, Shinhan, Woori, and Hana Bank to act as a bank agency, aiming to improve financial accessibility for the digitally vulnerable and those in underserved regions.

Korea Post, the four major commercial banks, and the Korea Financial Telecommunications & Clearings Institute have agreed to pilot the loan service at 20 main post offices located in counties where no commercial bank branches exist.

Starting July 20, a total of eight credit loan products—two from each bank—will be sold on a consignment basis.

Customers in the pilot regions can receive loan consultations at their local main post office, compare interest rates and loan limits across the different banks, and choose the product with the most favorable terms.

The post offices will handle front-line customer services such as loan consultations, document preparation, and submission, while the respective banks will be responsible for loan screening, approval, and post-management.

To ensure the pilot project settles in successfully, the Financial Services Commission has selected dedicated staff for bank agency services at each post office branch and conducted group training in coordination with the four major banks.

Infrastructure has also been established to allow pilot post offices to connect with nearby bank branches via a hotline for immediate support.

Furthermore, the authorities plan to dispatch bank personnel to each post office for the first one to two weeks of operation to guide customers through the entire process of loan consultation, application, and agreement.

The Financial Services Commission plans to complete infrastructure improvements within this year, such as the digitalization of documents and the establishment of large-scale file transfer programs, to reduce the time required for loan execution.

Currently, when applying for a bank loan at a post office, it takes at least two days for the loan to be executed.

Next year, the relevant agencies plan to review expanding the bank agency operations to other regions and broadening the service to include other products, such as loans for individual business owners, in addition to personal credit loans.

(Photo courtesy of Korea Post, Yonhap News)