The Korean Federation of Community Credit Cooperatives is giving 5bn won to disaster relief for communities after recent torrential rains brought devastation to the north of the country.
The Republic of Korea was lashed by several days of record-breaking rain in July, killing at least 19 people, displacing thousands and triggering landslides.
The government raised its disaster alert to the highest level with the weather agency warning of a once-in-a-century event, although scientists warn the country’s annual monsoon rains are becoming more extreme because of climate change.
As the country scrambles to respond to the disaster, the federation has set up a social sharing loan, offering emergency livelihood funds of up to 20m won per person. The interest rate of 4% is borne by the credit union’s Social Contribution Foundation, the Mail Business Newspaper reports.
The move follows efforts by the federation in April to support communities affected by the wildfires that broke out in Gyeongbuk, Gyeongnam and Ulsan on 21 March. The fires, which covered hundreds of square kilometres, causing trillions of won worth of damage.
The federation sat up a fund worth 1bn won collected by 741 credit unions, executives, and union members across the country.
Federation chair Kim Yoon-sik said: “I would like to express my condolences to our neighbours who have lost their living ground, including casualties due to record heavy rains. As a financial co-operative, the Korea Credit Union will practice the value of win-win and help the affected area recover quickly and stabilise.”
