Rural Koreans to access bank loans via post offices starting July 20

Starting July 20, residents in rural areas lacking commercial banks will gain access to personal credit loans from four major banks through their local post offices. This initiative, a collaboration between the Financial Services Commission, Korea Post, financial institutions, and four major commercial banks (KB Kookmin, Shinhan, Hana, and Woori), aims to bridge the financial accessibility gap.

The pilot program will be available at 20 central post offices situated in counties designated as "population-declining areas" by the Ministry of the Interior and Safety, and which do not have any commercial bank branches. Customers can visit these post offices to consult on loan options, compare interest rates and loan limits offered by different banks, and select the most favorable terms.

The post office will handle customer-facing services, including loan consultations and document submission. The banks, in turn, will manage the loan assessment, approval, and post-loan management processes. The Financial Services Commission plans to improve the infrastructure by digitizing documents and implementing large file transfer programs to reduce the time it takes to process loans, which currently takes about two days.

Looking ahead, the program is slated for expansion in the coming year. Plans include extending the service to other regions and broadening the range of loan products beyond personal credit loans to include loans for individual businesses. This move is expected to further enhance financial inclusion and support economic activity in underserved rural communities.