Smile Microcredit Bank chairman Kim Seung-yu has expressed his intention to step down from his post, said the Financial Services Commission, the parent entity of the state-run bank.

President Lee Myung-bak had installed his college classmate Kim as chief of the foundation, which runs more than 100 micro credit outlets across the country for the underprivileged.

While the extended term of Kim, who had worked as chairman of Hana Financial Group, is scheduled to end in February 2015, he reportedly tendered his resignation on the occasion of the change of administration.

SMB has issued loans totaling 400 billion won ($370 million) since March 2010 to those who failed to enjoy commercial bank loans because of poor credit standing.

The coming Park Geun-hye administration is expected to name the next chairman of the institution in coordination with the FSC.

(kys@heraldcorp.com)