Park Geun-hye administration, since its launch, has been thriving to improve people’s livelihood. In line with such initiative, the FSC has devised and announced several policy measures to provide financial support particularly for low-income earners.
For instance, the Happiness Fund, launched in March 2013, purchased delinquent loans of 2.8 million low income borrowers to reduce their debt servicing burden and supported debt restructuring of total 410,000 borrowers as of last month. Four major government-backed microloans have also provided a total of 11 trillion won to more than 1.1 million low-income earners.
On June 23, Tuesday, the FSC announced another series of its microfinance policy to strengthen low incomers’ financial stability. Chairman Yim Jong-yong convened a press briefing and explained the government’s detailed plan to support low income borrowers’ self sufficiency.
The plan consists of mainly 7 tasks. Find below for details of some of the major tasks.
The FSC will expand provision of policy loans to 5.7 trillion per year, which is expected to increase the number of beneficiaries from the current 470,000 to 600,000 annually.
The government will provide more incentives for policy loan borrowers who faithfully repay their debt without overdue. Such incentives include enabling to borrow up to 5 million won in emergency loans and issuing credit cards.
Furthermore, various microfinance products will be introduced tailored to each borrowers’ needs. For instance, ceilings for housing guarantee loans and chonsei loans will be increased. Starting from the latter half this year, tuition fee loans, insurance policies for the aged population, and special loans for the disabled will be newly introduced.
Low income borrowers will be able to receive comprehensive consulting and services related not only to microfinance, but also job seeking and welfare. Moreover, Microfinance Center will be launched to provide one-stop microfinance services.
Related bill has been submitted to the National Assembly and is waiting for approval. Starting no later than the second half of this year, low income borrowers will be able to benefit from the government’s new microfinance policy measures. As the previous initiatives did, we expect the newly announced plan would significantly contribute in improving livelihood of the ordinary Korean people.
Please read the press release if you want more information. Video footage of Chairman Yim’s press briefing with full English subtitle will be uploaded soon.