Segeumwon Supplies 240 Billion Won for 'Hetsalron Youth'... Special Guarantee Also Implemented Until Year-End

Budget Expanded by 100 Billion Won from Initial Plan
Special Guarantee Limit Raised from 3 Million Won to 5 Million Won

[Asia Economy Reporter Song Seung-seop] The Korea Inclusive Finance Agency announced on the 8th that it will expand the support scale of the Sunshine Loan Youth to 240 billion won and provide special guarantee support until the end of the year.

Sunshine Loan Youth is a financial product for the underprivileged that supports the economic independence of job seekers and young workers aged 19 to 34. The Korea Inclusive Finance Agency significantly increased the originally planned budget of 140 billion won to 240 billion won following the government’s budget increase.

Key Points of 2021 Saessalron Youth Special Guarantee [Photo by Seomin Financial Support Center]

They will also implement a special guarantee that raises the support limit for new users from 3 million won to 5 million won. The amount used under the special guarantee is excluded from the annual limit (6 million won) regulation of the general guarantee. For example, even if 5 million won is used under the special guarantee, after a certain period, an additional application of up to 6 million won can be made. However, existing users can only use the general guarantee.

The non-face-to-face screening service, conducted in accordance with social distancing measures, will also continue to operate. After applying through the agency’s own application (app), users can submit documents and receive guarantee screening non-face-to-face. Once the guarantee is approved, the loan can be executed through the Sunshine Loan Youth handling banks (Shinhan, IBK Industrial Bank, Jeonbuk Bank).

The special guarantee application period is until the end of this year, and the timing and amount of reapplication may vary depending on the usage amount. The purpose of funds and repayment plans should also be carefully considered.

Lee Gye-moon, President of the Korea Inclusive Finance Agency, emphasized, “We were able to secure resources to expand support for Sunshine Loan Youth through cooperation among the government, the National Assembly, and the agency,” and added, “We hope the special guarantee will be a help to college students and young people who urgently need funds or face difficulties in studying and preparing for employment.”