Press Release (July 6, 2010)
North Korean defectors to be given financial support for opening a business with an MOU signed
Minister of Unification and President of Hyundai Motor Group Smile Microcredit Bank (or the Foundation) signed an memorandum of understanding to provide microcredit to North Korean defectors who want to start a business at the Central Government Complex at July 6.
Under the agreement, the Ministry and the Foundation will conduct various projects to help North Korean defectors to open a business.
l The Ministry will examine qualifications of the loan applicants and recommend the qualified to the Foundation that will review their credit and financial records to select the final beneficiaries.
l The Foundation will provide an exclusive loan for North Korean start-ups called H-Hanaloan with business start-up education and loan management services.
Process: Notice (July 6 - August 5) Selection (August) Education and Counseling (August - September) Provision of loans (October)
l This is the first business start-up financial assistance given to North Korean defectors.
Allowing former North Korean defectors to have access to microfinance for staring a business can be a new model to help them to successfully settle in South Korea. Therefore,
l The Ministry will evaluate the project in every step to make it better and then expand the project.
Believing that the best way for around 20,000 North Korean defectors living in South Korea now to lead a decent life is to get a job, the Ministry of Unification is making a range of efforts to encourage them to do so.
l The Ministry is striving to establish social enterprises and support job assistance projects led by the government. It is also working with private organizations to create around 2,000 jobs for the defectors this year.
Ministry of Unification