Starting on the 20th of this month, customers will be able to handle commercial banks' loan products at 20 post offices across Korea.
Lee Eok-won, Chairman of the Financial Services Commission (FSC), announced the plan to improve regional financial access at the sixth Inclusive Finance Transformation meeting held on the 9th at the Jeonbuk Regional Small and Medium Business Administration in Jeonju, North Jeolla Province.
Accordingly, the Korea Post will pilot a bank agency business at 20 head post offices in North Gyeongsang, South Gyeongsang, Chungcheong, Gangwon, North Jeolla, and South Jeolla provinces starting on the 20th. Residents in areas without bank branches will be able to visit a nearby post office to receive consultations on loan products from KB Kookmin, Shinhan, Hana, and Woori banks and complete applications and agreements.
The plan is to first supply credit loans with a maximum limit of 100 million won, then expand the range of products handled. Each bank will provide an average interest rate preference of 0.2 percentage point to customers using loan products at post offices. "Consumers will be able to enjoy an effect similar to using an offline loan comparison platform through post offices," an FSC official said. "This can contribute to enhancing consumer convenience and choice."
Joint loan operations between internet banks and regional banks will also take shape in earnest. In this arrangement, customers are recruited using internet banks' digital channels, while loan supply and screening are shared. Kakao Bank and Busan Bank are preparing to launch joint loan products for small and medium-sized enterprises and individual business owners. The FSC plans to actively review innovative financial service designations to support the launch. Because internet banks can raise funds at low cost, the loans are expected to be offered at interest rates about 0.3 percentage point lower than existing regional bank loan products.
The supply of mutual-benefit insurance will also be expanded. The FSC plans to launch mutual-benefit insurance that provides health consultations and healthcare services to elderly people living alone, as well as megatrend-related insurance supporting victims of voice phishing and heat waves, to help vulnerable groups. Starting in the third quarter of this year, it will sign memorandums of understanding (MOU) with the insurance industry, beginning with local governments and public institutions that have completed consultations, for an official launch in the first quarter of next year.
"Regional finance is a core foundation that protects the daily lives of small business owners, supports the growth of local companies, and shapes the future of the regional economy," Chairman Lee said. "Regional finance must fulfill its role in achieving inclusive finance where no place is left out and everyone comes together, and in ensuring that funds flow into productive sectors."
