NH NongHyup Financial will move to establish the NH Smile Microfinance Foundation with 100 billion won through joint contributions by major affiliates. It plans to expand region-focused inclusive finance by preparing specialised products for farmers and young people returning to farming or rural areas, in addition to existing start-up and operating funds and living-stability funds.

NH NongHyup Financial said on July 22 it held the first meeting of a task force on July 21 to set up the NH Smile Microfinance Foundation and reviewed the establishment process and detailed implementation plans.

NongHyup Financial previously said it would take part in microfinance projects as it announced plans to expand inclusive finance, including writing off long-overdue debts. It then drew up a roadmap to complete the foundation’s establishment within this year after consultations with related agencies including the Financial Services Commission and the Korea Inclusive Finance Agency.

Major affiliates including NongHyup Bank, NH Investment & Securities, and insurance and capital units will take part in the foundation’s establishment and jointly contribute a total of 100 billion won.

The task force will be led by Hwang Jong-yeon (황종연), executive vice president for strategic planning, who heads the inclusive finance subcommittee under NongHyup Financial’s Special Committee on Productive Finance. The task force will flesh out the foundation’s operating model, product line-up and regional supply system.

NongHyup Financial plans to prepare tailored products for farmers and young people returning to farming or rural areas, in addition to existing Smile Microfinance products such as start-up and operating funds and living-stability funds.

It also plans to improve access for regional financial consumers by using the nationwide city and county-level branch networks held by affiliates including NongHyup Bank.

Lee Chan-woo (이찬우), chairman of NH NongHyup Financial, said, "Inclusive finance is not a choice but an obligation for financial companies," adding, "We will support revitalisation of local economies through specialised Smile Microfinance products."