Residents in rural and fishing communities without commercial bank branches will be able to compare and apply for credit loan products from four major commercial banks at post offices.

Korea Post, under the Ministry of Science and ICT, said on Sunday it signed a business agreement with KB Kookmin, Shinhan, Woori and Hana Bank to promote post office agency banking services.

Korea Post, the four major commercial banks and the Korea Financial Telecommunications and Clearings Institute will run a pilot of the loan agency banking service from July 20 at 20 head post offices in county-level areas without commercial banks.

The areas are Goseong, Changnyeong and Hadong in South Gyeongsang; Cheongyang, Taean, Danyang and Goesan in Chungcheong; Gurye, Damyang, Yeonggwang and Hampyeong in South Jeolla; Bonghwa, Cheongdo and Seongju in North Gyeongsang; Imsil, Sunchang and Gochang in North Jeolla; and Pyeongchang, Hwacheon and Hoengseong in Gangwon.

At post offices, customers can apply for a total of 8 products, including representative credit loans offered by each of the four major commercial banks and the policy loan Saehopeum Holssi. Customers can receive loan consultations at post office counters and choose a product after comparing conditions such as interest rates and limits. Post offices will handle consultations and document preparation and submission, while each bank will be responsible for loan screening and approval and after-service management.

In the early stage of the pilot, it may take at least 2 days from application for the contract to loan disbursement because loan contract documents will be mailed from post offices to banks.

To mark the pilot, Korea Post will provide a commemorative gift worth 10,000 won to 50 customers at each post office who apply for loan screening. It will also present a thank-you gift worth 100,000 won to the first customer at each post office to sign a loan contract.

Park In-hwan (박인환), head of Korea Post, said he would strengthen the post office's role in providing non-discriminatory access to financial services for vulnerable groups such as older people and rural residents who are struggling because commercial bank branches are closing.