FSS Korea Announces Expansion of Mid-Interest Rate Loans to Promote Inclusive Finance

FSS Korea announced measures to expand mid-interest rate loans at lower rates as part of inclusive finance initiatives. The Sajitdol program will be reformed with new eligibility criteria centered on near-prime borrowers, a new category for individual business owners, and expanded supply channels across financial sectors. The private mid-interest rate loan program will improve interest rate calculation formulas, implement differentiated incentives based on rate levels, and diversify supply channels. Financial institutions participating in these programs should prepare for the announced targets and rate reduction structures for 2026 implementation.

Affected parties include banks and financial institutions that offer or plan to offer mid-interest rate loan products. Financial institutions should review their Sajitdol loan programs against the new eligibility criteria and assess capacity to meet the 3.6 trillion won supply target. For private mid-interest rate loans, institutions should evaluate the incentive structure changes and rate calculation formula modifications when designing or adjusting product offerings.