Lee Jae-myung Announces Basic Loan Pledge: "Up to 10 Million Won at Low Interest for All Citizens"
[Asia Economy Reporter Heo Midam] Yoon Hee-sook, a member of the People Power Party, criticized Lee Jae-myung, the Democratic Party presidential candidate and Governor of Gyeonggi Province, on the 10th, saying, "What should we do about the cowardice and ignorance of hiding behind the completely opposite pledge of Lee Jun-seok, the leader of the People Power Party?"
On the same day, Yoon wrote on her Facebook, "Governor Lee seems quite unsure despite putting forward the basic loan pledge. Suddenly, he mentions Leader Lee's past pledge and asks to block attacks because the content is similar," she said.
Earlier that day, Governor Lee held a policy announcement press conference and unveiled the 'basic loan' pledge, which allows all citizens to borrow up to 10 million won at a low interest rate of around 3% (current standard), slightly higher than preferential rates, for a long term (10 to 20 years).
In particular, Governor Lee referred to the basic loan system proposed by Leader Lee when he was a candidate for party leader, saying, "Leader Lee might significantly block the People Power Party's attacks on the basic loan," and added, "On the other hand, I hope this will be a good opportunity for policy competition."
During the party convention, Leader Lee mentioned the basic loan system as a solution to the low birthrate problem, saying, "If the state guarantees and provides 30 to 40 million won to young people through the basic loan system, they can prepare housing, which will lead to earlier marriages."
Lee Jae-myung, the Democratic Party presidential primary candidate and Governor of Gyeonggi Province, announced the 'Nationwide 10 Million Won Long-term Low-interest Loan Pledge' through a virtual press conference at a building in Yeouido, Seoul, on the morning of the 10th. [Image source=Yonhap News]
Regarding this, Yoon said, "The pledge is so unrealistic that I don't even want to mention it, but since the People Power Party leader's pledge is being used as a point of contention, I must at least point out one thing," adding, "What is even more absurd than the pledge content is that Governor Lee still does not know how his pledge differs from Leader Lee's. Well, if he understood the difference, he probably wouldn't have made such a pledge."
She explained, "The core of Leader Lee's basic loan pledge is state guarantee," adding, "It is a political promise and a proposal for social consensus to inject public funds to help young people who have difficulty obtaining loans due to conventional credit evaluations to finance their own homes."
She continued, "Governor Lee's basic loan pledge is about providing long-term low-interest loans, arbitrarily twisting the risk assessment function of the financial market, that is, the price function of the financial market," and criticized, "It is astonishing that he dares to nullify the credit evaluation function of private operators and distort price signals, thereby fundamentally damaging the economy."
Furthermore, Yoon concluded her statement by saying, "Of course, the most surprising point is the cowardice and ignorance of hiding behind Leader Lee's pledge, which is completely opposite."
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