Sunshine Loans Launched to Help the Poor
Jae-yoon, J.

The new Sunshine loans and Smile Microcredit loans, or Miso Credit, differ in their source of funding. Sunshine loans are supported by commercial financial firms such as local savings banks and cooperative lenders, including the National Agricultural Cooperative Federation, whereas Smile Microcredit loans are financed by the non-profit Smile Microcredit Bank. The Sunshine loans are meant for living expenses, while Smile Microcredit loans focus on helping low-income earners open their own businesses.

Financial Service Commission Chairman Chin Dong-soo said that Sunshine loans are expected to “become a new win-win business model between people and credit cooperatives.” Some market analysts are critical of the government’s efforts to help those with low credit ratings and low income.  

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Related Links:

South Korea: 'Smile' Microcredit Gives Few Smiles to Needy

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