S. Korea to provide 2 tln won in loans to low-income households

SEOUL, Sept. 17 (Yonhap) -- South Korea's financial watchdog said Thursday the country plans to lend more than 2 trillion won (US$1.66 billion) with no collateral to low-income households to help them cope with the economic downturn.

Without financial assistance from the government, local financial firms and
companies plan to create a foundation by donating 2 trillion won, the Financial
Services Commission (FSC) said. The foundation will support 250,000 low-income
households over the next 10 years, it added.
"It is meaningful that the private sector is set to provide loans to ordinary
people in need through donations by large companies," President Lee Myung-bak
said after holding an economic emergency meeting.
The move comes as the country's job market remained sluggish despite signs of an
economic recovery, dealing a heavier blow to low-income families.
A global financial meltdown also made it difficult for people with bad credit to
get loans from banks. The FSC said the move would provide a boost to people who
have bad credit, but willingness to get on their feet.
sooyeon@yna.co.kr
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