본문 바로가기
  • Home

Social Performance and Sustainability of Microfinance Programs: Comparison of Korea and U.K.

  • Korea Social Policy Review
  • Abbr : KSPR
  • 2017, 24(3), pp.27-53
  • DOI : 10.17000/kspr.24.3.201709.27
  • Publisher : Korean Association of Social Policy
  • Research Area : Social Science > Sociology > Medical / Welfare / Social policy
  • Published : September 30, 2017

안소영 1 정영순 1

1이화여자대학교

Accredited

ABSTRACT

This paper aims to provide a comparative analysis between Korea’s Miso Microfinance and U.K.’s Community Development Finance Institutions (CDFI) in order to explore ways to enhance the social performance and sustainability of Miso Microfinance. Compared with CDFI, the estimated number of loans under Miso Microfinance was increased nearly three-fold, but the Miso Microfinance is insufficient in terms of qualitative social performance, the number of jobs created or sustained. Although Miso Microfinance solely relied on secured funds, large size of loans and financial self-sufficiency ratio of 80.1% raised concerns over its sustainability. On the other hand, the CDFI showed an average financial self-sufficiency ratio of 55.5%, but the CDFI displayed new capital inflows every year and boasted an operating self-sufficiency of 93.8% by means of service fees and subsidies, consequently led to greater sustainability. Based on our comparative analysis, it is crucial to clearly define the social performance objectives which Miso Microfinance is aimed to achieve and to cover the incurred expense to ensure greater social performance and sustainability of Miso Microfinance. It is also important to have access to diverse funding sources, to regulate various types of microfinance institutions under the same laws, and to systematically oversee them.

Citation status

* References for papers published after 2022 are currently being built.