광주은행 햇살론뱅크This year’s target is 5.98 trillion won, about 850 billion won less than last year
Supply targets for Workers’ Sunshine Loan, Sunshine Loan 15, Sunshine Loan Bank, etc. have decreased
This year’s Sunshine Loan Bank executes 731.7 billion won, while commercial banks ‘ignore handling’ 1.1 billion won
Amid the economic recession caused by high interest rates and high prices, the target for this year’s policy microfinance supply has actually decreased.
According to data submitted to the Financial Services Commission by Han Chang-min, a Social Democratic Party member of the National Assembly’s Political Affairs Committee, on the 10th, the supply target for this year’s policy microfinance products has decreased by 850 billion won (12.44%) from the previous year (6.83 trillion won) to 5.98 trillion won.
The supply target for Workers’ Sunshine Loan has decreased by 600 billion won from 3.2 trillion won last year to 2.6 trillion won this year. Last year, the usage of the Workers’ Sunshine Loan exceeded the target amount of 3.4342 trillion won. This year’s performance as of the end of August was 1.7389 trillion won, half of last year’s level.
The Workers’ Sunshine Loan is a product that provides a guaranteed loan of up to 20 million won (with an interest rate of 11.5%) to vulnerable groups with an annual income of 35 million won or less or an annual income of 45 million won or less and a credit score in the bottom 20%.
Among the policy financial products for the common people, the supply target for Sunshine Loan 15 this year is 1.5 trillion won, a decrease of 250 billion won from 1.3 trillion won last year. Last year’s usage of Sunshine Loan 15 exceeded the target amount of 1.3086 trillion won. This year’s performance as of the end of August was 580.6 billion won, less than half of last year’s level. Sunshine Loan 15 is also a product that provides a guaranteed loan of up to 20 million won (interest rate of 15.9%) to vulnerable groups with an annual income of 35 million won or less or an annual income of 45 million won or less and a credit score in the bottom 20%. Vulnerable groups mainly apply for the worker Sunshine Loan with a relatively favorable interest rate and then additionally use Sunshine Loan 15.
However, if the number of users increases significantly, the supply target can be increased. In the case of the worker Sunshine Loan, the initial target for 2022 and 2023 was 2.6 trillion won, but it increased to 3.5 trillion won and 3.2 trillion won, respectively. The actual supply amount in 2022 was 3.8285 trillion won, reaching 109% of the supply target amount. Last year, it was also recorded at 107%.
The supply target amount for the Sunshine Loan Card was reduced by half from 100 billion won in 2022 to 50 billion won last year and 50 billion won this year. The Sunshine Loan Card is a system that supports credit card issuance for those who do not have a credit card (those with a credit score in the bottom 20% or lower and an annual disposable income of 6 million won or more), and the support limit is 3 million won (guaranteed by the Korea Financial Services Commission). ◆Commercial banks reluctant to support vulnerable groups with improved credit = The Sunshine Loan Bank supply target also decreased from 1.4 trillion won in 2022 to 1.2 trillion won last year and this year. The actual supply in 2022 was 1.2361 trillion won, which was 88% of the target amount, but last year, it exceeded the target amount by 111% with 1.3329 trillion won. This year’s performance is 731.7 billion won as of August, which is 61% of the target amount. The Sunshine Loan Bank is a collateralized loan with a limit of 25 million won (weighted average interest rate of 8.7%) for vulnerable groups with an annual income of 35 million won or less or an annual income of 45 million won or less and a credit score of the bottom 20% or lower who have used a policy-based financial product for more than 6 months and have improved their debt or credit rating. It is a so-called stepping stone loan, a product that allows ordinary people to switch to bank loans with lower interest rates. However, the Sunshine Loan Bank loan performance of commercial banks is poor. As of August this year, 14 banks handled 731.75 billion won in loans, but the four major commercial banks handled only 1.16 billion won. Hana Bank was the lowest at 240 million won, followed by Kookmin Bank and Woori Bank at 270 million won each, and Shinhan Bank at 380 million won. Last year, 1.3329 trillion won was handled. Among them, Woori Bank’s handling amount was 1.97 billion won, accounting for only 0.1%. Hana Bank (2.2 billion won), Shinhan Bank (2.65 billion won), and Kookmin Bank (3.13 billion won) each accounted for 0.2%.
On the other hand, Jeonbuk Bank had the largest amount at 684.1 billion won (51.3%), followed by I’m Bank (17.8%), Toss (16.6%), and Gwangju Bank (11.5%).
◆Small-sum living expenses loans exceed 290,000, but no budget support = Small-sum living expenses loans, which were designed for vulnerable groups in need of emergency funds, were introduced last year and have provided over 290,000 loans as of the end of August this year.
According to data submitted by the Financial Services Commission to Rep. Han Chang-min, the number of loans from January to the end of August this year was 125,259. The total number of loans, including 165,325 last year, is 295,844. The small-sum living expenses loan is a system that supports living expenses of up to 1 million won (basic 500,000 won, interest rate gradually reduced from 15.9% per year) for vulnerable groups among adults aged 19 or older with an annual income of 35 million won or less and a credit score in the bottom 20%. The average loan size is 560,000 won, and a total of 163.69 billion won was supported, including 95.83 billion won last year and 67.86 billion won this year. Demand for small-sum living expenses loans continues steadily, but stable funding sources have not been secured. Small-sum living expenses loans are currently being operated with funds prepared by the Korea Asset Management Corporation (KAMCO) and donations from banks, not the government budget. The Financial Services Commission applied for a budget of 100 billion won for the small-sum living expenses loan project next year, but the Ministry of Strategy and Finance did not accept it. Last year, a budget of 150 billion won was requested, but it was cut.
Reporter Lee Gyeong-gi cellin@naeil.com
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