SMUs Participatory

Approach to
Development

Availability of Resources and Financing

Sources:
Community

Resources

Self-support
Loans

from government controlled semipublic banks

National Agricultural Cooperative Federation

National Fishery Cooperative Federation

Government

Availability of Resources and Financing

Total amount of Investment (1971-1979): W 2752.1 Billion

Breakdown

W 772.5 Billion (28%) Government

W 1979.6 Billion (72%) Local Community

Availability of Resources and Financing

Funding

Long-term, low Interest loans from Govt sponsored

cooperatives

Rural Communities

Saemaul Bank savings of wage-earning villagers

Saemaul Bank
Founded

by the rural Villagers itself throughout

the SMU period

Originally

started as a savings bank

Eventually

started sending out loans to support

SMU projects

Currently

FIRM

YONGMUN TONGHAP SAEMAUL FINANCE

Targeted SMU Projects

Expansion

of Village Road Networks

Construction
Small

of Farm Roads

Bridges

Community

Facilities

Targeted SMU Projects

Alignment

of Farmlands

Upgrading

of Residential Housing

Electrification
Establishment
Forestation

of Saemaul Factories

Drawbacks

Increased the liabilities of the rural communities

Funding in the rural communities supported the SMU, but

created a growing rural household debt pressured
community members

Government Resources
From

1971 to 1979

Govt

support leveraged W 772.5 Billion

to W 1979.6 Billion in Community
financing

Community Financing

Self-help investment by the rural communities exceeded

govt financing of the SMU Movement

W 1.98 Trillion from 1971 to 1979

Nearly tripled the W 772.5 Billion support from the Govt