Korea Post has started a pilot bank agency service to improve access in areas underserved by financial services.

Park In-hwan (박인환), head of Korea Post, visited the Cheongyang Post Office in South Chungcheong Province on Sunday to inspect operations at a pilot site.

The bank agency service supports consultations and applications for bank loan products at head post offices in county-level areas without commercial bank branches. It was introduced to improve financial access for digitally and financially vulnerable groups, including older people and rural residents.

The pilot post offices total 20 locations: Goseong, Changnyeong and Hadong in South Gyeongsang Province; Cheongyang, Taean, Danyang and Goesan in the Chungcheong region; Gurye, Damyang, Yeonggwang and Hampyeong in South Jeolla Province; Bonghwa, Cheongdo and Seongju in North Gyeongsang Province; Imsil, Sunchang and Gochang in North Jeolla Province; and Pyeongchang, Hwacheon and Hoengseong in Gangwon Province.

Users can receive consultations at once on eight products, including flagship unsecured credit loans from the four major banks and the policy loan product Saehui-mang Holssi. They can compare loan interest rates and limits and choose the product with the most favourable terms.

Korea Post expects less inconvenience for residents who previously had to travel long distances to use financial services. It also expects an effect of reducing interest burdens through comparisons of loan conditions.

Park said providing loan services from the four major banks at post offices would reduce the hassle of residents having to travel long distances. He said he would strengthen the post office's role in providing equal access to financial services for older people and rural residents who face difficulties due to the closure of commercial bank branches.

Korea Post will provide souvenirs worth 10,000 won to 50 customers at each post office who apply for loan screening. It will also give thank-you gifts worth 100,000 won to customers who are the first at each post office to sign a loan agreement.