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News

Briefing

  • 04 / 19 / 2012
  • Kim Seok-dong's on-site tour

  • 'Smile Microfinance' for low-income households
    'Sunshine Loans' for urgency
    'Shift Loans' to lower-interest loans
    Various channels to provide microfinance services for low-income households


    The global financial crisis

    Slow recovery of the real economy


    Low-income households face greater difficulties in borrowing money

    There is a growing need to check whether microfinance programs work as intended.

    [2012 FSC Policy Agenda Briefing on December 30, 2011]


    (President Lee Myung-bak) It is very critical for government officials to make on-site visits and listen to people's voice.


    In March, the FSC conducted on-site visits to check how microfinance programs acutally work.

    FSC Chairman's on-site tour to check microfinance services


    Financial Services Commission


    (D-31, February 17, 2012) The on-site visit project begins.

    We need to go out there and listen to what people actually need...

    (D-20, Chairman’s briefing on February 28, 2012) FSC Chairman Kim Seok-dong:

    Whether microfinance programs work as intended…

    (D-14, Meeting with relevant government agencies on March 5, 2012)

    Whether we still fall short of enough funds to support microfinance programs…

    (D-14, The executives' meeting on March 5, 2012)

    Why there are still many low-income earners having difficulties in getting microcredit loans


    (D-10, March 9, 2012)

    Places to visit and topics to discuss are confirmed.

    (FSC Deputy Director Kim Taehoon)

    We would like to make on-site meetings casual

    so that we can hold candid talks with microfinance users…

    Seoul → Daejeon → Gwangju → Changwon → Daegu → Wonju → Seoul


    (D-7, March 12, 2012)
    The project is officially named as "Kim Seok-dong’s on-site tour”

    (D-2, March 17, 2012)
    Preliminary visit

    (D-day, March 19, 2012)
    First, FSC focused on diversifying topics
    depending on visiting places.

    Diverse topics for each region


    [Daejeon, meeting with Smile Microcredit borrowers]

    I was not qualified for Smile Microcredit loans because...

    [Gwangju, meeting with Credit Recovery program participants]

    It has become a lifetime stigma for me that I stood surety for...

    [Changwon, customized assistance program]

    [Daegu, meeting with college students]

    [Wonju, meeting with 'Sunshine Loan' borrowers]


    Second, FSC communicated with people in various ways

    Various forms of casual talks

    Candid talks with traditional market merchants, Daejeon

    Casual talks with college students, Daegu

    Visit a traditional market, Daejeon

    Productive meetings

    Staff members from Smile Microcredit Foundation and microfinance institutions attended the meetings

    to give prompt response to concerns and issues raised by participants.


    Proactive communications with support from the media

    Last, journalists joined the tour to cover the stories and increase awareness of the microcredit services.

    (Lee Dae-hyuk, Journalist, the Hankook Ilbo)
    As some rightly pointed out, you need to go where policies are actually implemented if you want to solve the problems.

    I expect this visit would not end up with just figuring out what problems are.

    I hope this on-site tour would become an opportunity to provide solutions

    and come up with better policies to support people.

    The people we met along the way said…

    [Meeting with merchants, Daejeon]

    Those who apply for Smile Microcredit loans are financially difficult, but they are often rejected…

    [Meeting with Sunshine Loan borrowers]

    For low-credit rating holders, we want loan application procedure to be simpler, for example, skipping submission of income evidence.

    [Meeting with assistance program beneficiaries, Changwon]

    Low-income earners have no choice but to rely on private lenders despite their extremely high interest rates because it is hard to get loans from banks.

    There are still many who are not aware of these microfinance services.

    Through the on-site tour,

    FSC was able to get valuable feedback from the people.

    [FSC Chairman Kim Seok-dong]

    The tour was a precious and significantly rewarding experience for me.

    The government will continue to do our best

    to relieve low-income households' financial difficulties.


    This trip was a second round of FSC Chairman's on-site visits

    following the first trip to SMEs in November last year.

    FSC’s on-site tours will continue...

    Visitng the people...

    Finding out how FSC can help...


    FSC’s on-site tours to be continued...



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