The Korea Federation of Banks said on Tuesday the banking sector has completed support totalling 2.1 trillion won after wrapping up the voluntary programs carried out under a livelihood finance support plan.

As part of the livelihood finance support plan implemented on Feb. 1, 2024, banks have run bank-by-bank voluntary programs since March 27, 2024. The voluntary programs are designed for each bank to support vulnerable groups on its own, using about 600 billion won of the plan's total 2.1 trillion won, excluding a common program worth 1.5 trillion won such as interest refunds (cashback) for the self-employed and small merchants.

Fifteen banks took part in the voluntary programs, including Hana, Shinhan, Woori, KB, IBK, SC First Bank, Citibank Korea, Kakao, Gwangju, Suhyup, NongHyup, iM Bank, Busan, Jeonbuk and Gyeongnam.

Banks executed a cumulative 630.8 billion won through the voluntary programs. They executed an additional 39.0 billion won in the second half of 2025, exceeding the 615.6 billion won target by 15.2 billion won. Through the first half of 2025, 591.8 billion won had been executed.

As a result, banks completed the execution of the 1.5 trillion won common program in the first half of last year and also exceeded the 600 billion won voluntary-program target by the second half. The entire 2.1 trillion won livelihood finance support plan has been executed.

The voluntary programs consist of support for small merchants and small companies, support for young people and financially vulnerable groups, and contributions to the Korea Inclusive Finance Agency and support for a low-interest refinancing program.

A total of 225.6 billion won was executed for support for small merchants and small companies, including 23.6 billion won executed in the second half of last year. The support is aimed at helping small merchants and small companies run their businesses smoothly and easing interest burdens as they struggle with high interest rates and an economic downturn. In the second half of last year, 12.2 billion won was executed to reduce loan principal and interest payments, 10.1 billion won for guarantee-fee support and 1.3 billion won for management improvement support.

A total of 174.8 billion won was executed for support for young people and financially vulnerable groups, including 15.4 billion won executed in the second half of last year. Support totalling 3.1 billion won included 1.0 billion won for student loans for young people and 2.1 billion won for living stability funds such as housing and food costs. For financially vulnerable groups such as low-income people, a total of 12.3 billion won was executed, including 12.0 billion won to reduce loan principal and interest payments and 300 million won in financial cost support.

A total of 230.4 billion won was投入 for contributions to the Korea Inclusive Finance Agency and support for a low-interest refinancing program. The 221.4 billion won in contributions to the Korea Inclusive Finance Agency was fully executed by the third quarter of 2024, and 9.0 billion won was provided in 2024 for a low-interest refinancing program carried out by the Financial Services Commission and the Korea Credit Guarantee Fund. The program converts business loans with high interest rates of 7 percent or more into low-interest loans of 5.5 percent or less.