Banks to Focus on Loans for Social Enterprises

The Financial Supervisory Service (FSS) revealed on February 17 that banks had plans to provide loans of up to 65 billion won (US$61.3 million), a 65 percent increase from the year before, with an emphasis on loaning money to social enterprises.

By category, banks will increase loan products geared especially for social enterprises in particular, with the amount estimated at about 59 billion won (US$55.6 million).  The amount for purchasing supplies and goods will also increase to 3 billion won (US$2.8 million), and donation and public support 2 billion won (US$1.9 million).

In 2013, 39.4 billion won (US$37.1 million) was loaned for social enterprises.  This was 87.8 percent of the total amount, followed by the purchase of supplies and goods at 5.1 percent, and donation and public support at 4.8 percent.  By bank, KB Kookmin had given 9.3 billion won (US$8.8 million), IBK 8.2 billion won (US$7.7 million), and Woori 4.6 billion won (US$4.3 million).

According to the FSS, this was a result of an increased social spending and awareness program which was aimed to bolster social enterprises.

FSS plans to further increase support for banks that provide for the social enterprise, with a focus on providing for the public welfare.