Gyeonggi Province has initiated a loan program aimed at residents with low credit ratings who face difficulties accessing institutional finance. The first round of the 'Gyeonggi Extremely Low Credit Loan 2.0' program has successfully lent 2.06 billion won to 1,618 applicants, who were selected from 2,195 initial applicants that underwent counseling and eligibility assessments. The high demand for these loans was evident, as the application portal was overwhelmed within 30 minutes of opening, indicating a significant need for emergency living funds amidst rising living costs and interest rates.

The analysis of the loan recipients showed that the average loan amount per person was 1.27 million won, with the majority (33.5%) being in their 40s, and 43% of the borrowers being employed in various sectors. Most borrowers reported using the funds primarily for everyday living expenses, which comprised 75.2% of the total loan purposes, followed by repayments of existing loans or utility bills at 10.7%, and medical expenses at 5.1%. Additionally, a concerning 27.1% of borrowers indicated they had previously resorted to high-interest loans or illegal money lending, highlighting the precarious financial situations many find themselves in.

The 'Gyeonggi Extremely Low Credit Loan 2.0' program is designed to assist the bottom 10% of credit scorers in the region with micro-loans of up to 2 million won. Significant changes have been made to this year's program, extending the repayment period from five to a maximum of ten years, and enhancing support by connecting financial, employment, and welfare services for borrowers. A second round of applications is planned for May, and there are considerations in place for developing tailored loan products for victims of illegal money lending, further emphasizing Gyeonggi Province's commitment to supporting its most vulnerable residents.