A Korean nonprofit organization providing interest-free, collateral-free microloans to financially vulnerable populations has formed an advisory board of professors to expand its operations.
Deobureo Saneun Saramdeul (People Living Together) announced on the 2nd that it held an advisory board appointment ceremony and first meeting at the Daeheung-dong Community Center in Mapo-gu, Seoul on the 27th of last month to discuss expansion plans.
The organization aims to go beyond microloans by providing educational programs to help vulnerable groups achieve self-sufficiency and independence.
The advisory board, established on the 19th of last month, is chaired by Ko Dong-won, Professor Emeritus at Sungkyunkwan University Law School, with Yeon Gyu-hong, former President of Hanshin University, serving as Vice Chairman. The 24-member board includes Lee Sang-oh, Professor Emeritus at Yonsei University Graduate School of Education (Secretary General); Jeong Ji-yong, Professor at Duksung Women's University College of Business; Kim Ja-bong, Senior Researcher at Korea Institute of Finance; and Seong Su-yong, Professor at the Financial Supervisory Service.
Since 2012, the organization has provided unsecured credit loans with no interest, collateral, or guarantees to vulnerable, impoverished, and financially excluded populations who struggle to access traditional banking services. Initial loans start at 100,000 won, with limits increasing based on repayment history up to a maximum of 3 million won over one year. Over 15 years of operation, the organization has lent more than 4.4 billion won to approximately 10,000 people, achieving a 90 percent repayment rate.
Beyond microloans, the organization actively connects borrowers with hospitals when medical treatment is needed and refers those requiring larger funds to savings banks offering low-interest loans.
"Although the KOSPI index has exceeded 6,000 points, the real economy remains difficult," said Lee Chang-ho, Representative of Deobureo Saneun Saramdeul. "We are exploring ways to utilize the advisory board to provide educational programs that help vulnerable groups become self-sufficient, so we can benefit and assist more people."
Former President Yeon said, "As Bangladesh's Grameen Bank, which served as our business model, marks its 50th anniversary this year, it is time for Deobureo Saneun Saramdeul to consider sustainable development directions. The advisory board will share its experience and knowledge."
