Four powerful sectors in the Microcredit Foundation

Alright, there are more to tell you about the Microfinance Foundation. It deals with not only in supporting people to run their small businesses, but also do four more sectors;

(2) helping debtors to recover their credit rating, (3) giving loans to small business runners in traditional market, (4) giving free insurance to welfare centers for the challenged and underprivileged children, and (5) providing loans to social enterprises.

2) How to help debtors to recover their credit rating? 빚

Well, the foundation provides less than 5 million Korean won to each debtor with low interest late, less than 4 percent. Then, the recipients can pay the money back for five years while trying to make money to repay their debt by progressing with the loan.

Finally the person all get rid of his or her debt.

Finally the person all get rid of his or her debt.

 

 

 

 

 

 

 

 

 

 

3) How the merchants in traditional market can receive benefits from the foundation?

Merchants in traditional Korean market

Merchants in traditional Korean market

Small business holders in traditional markets can receive also 5 million Korean won each from the service. The recipients for this loan should pay back in a year with an interest rate, 4.5 percent. The foundation coordinates this service further with 13 regional governments. 

 

 

 

 

 

 

 

 4) FREE insurance for welfare centers?

The foundation also takes care of social infrastructures for the children in low-income family and welfare center for the disabled. Total 770 facilities covering 10,161 people, nominated by 16 self-government throughout the nation, will be receiving this free insurance.

Children are happy when basic infrastructure functions well.

Children are happy when basic infrastructure functions well.

 

 

 

 

 

 

 

 

 5) The last, but not least, the Microfinance Foundation also keeps its attention on supporting social enterprises. It provides less than 0.2 billion Korean won to each enterprises certified by Ministry of Labor with an interest rate in between 2 to 4 percent. Then, the enterprise is expected to pay back in six years.

   Well, so far, any questions? 🙂

It seems like the foundation look a lot different compared to the original version of microcredit loan in Bangladesh. The Korean version of microcredit loan is just expanded its size and tries to help both persons who are in a burden of economic hardship and small business including social welfare centers. And furthermore, it encourages socially responsible enterprises by giving low interest loans to them.

 Despite the economic downturn in South Korea, this foundation aims to help recover debtors who are economically underprivileged and spur positive fever among small business runners and social enterprises. But, since this project highly depend on the recipients’ ability to pay back, there is still a room for us to keep an eye on the matter.

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About FSC Korea
The Financial Services Commission has been established for the purpose of protecting the integration of Korea’s financial markets by promoting sound credit system and fair business practices. To this end, the FSC serves as a consolidated policy making body for all matters pertaining to supervision of the financial industry as a whole. To raise the efficiency, the posts of the FSC Chairman and the FSS Governor were separated on March 2008 for clear distinction between policy-making and execution of financial market supervision

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