KB Financial Group to invest 6.9 trillion won in customized financial aid for vulnerable groups

KB Financial Group is set to inject 6.9 trillion won into customized financial support programs this year, aiming to ease the debt burden for vulnerable populations and stimulate economic activity. The initiative, branded as the 'KB National Happiness Hope Project,' focuses on enhancing financial accessibility for those with lower credit scores and supporting small business owners.

The comprehensive plan allocates approximately 3 trillion won towards inclusive finance, which involves lowering lending thresholds for individuals facing difficulties accessing financial services due to income, credit, or information barriers. This includes reducing interest rates on loans for low-income individuals and offering debt relief, potentially up to 90% principal reduction, for youth and socially vulnerable groups to aid their credit recovery.

Furthermore, KB Financial Group will supply 3.5 trillion won in mid-interest rate loans through its major affiliates, including KB Kookmin Bank, KB Kookmin Card, KB Capital, and KB Savings Bank. KB Kookmin Bank alone plans to provide 1.53 trillion won in such loans this year, having already disbursed 306.8 billion won in the first quarter, accounting for nearly half of the total mid-to-low credit lending by major commercial banks. The group also plans to proactively write off approximately 450 billion won in overdue loans this year to alleviate financial pressure on vulnerable customers.

In addition to these measures, KB Financial Group is expanding its programs to support the economic independence and asset formation of young people. A new 'Youth Hope Loan II' product, offering up to 5 million won to individuals under 34, is slated for release this year, with additional interest rate benefits for those who make timely repayments and complete financial education. This broad financial support strategy is part of a larger commitment to provide 110 trillion won in productive and inclusive finance by 2030.