[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province has launched its flagship projects, the 'Farmer Basic Income' and the 'Youth Basic Loan.'
The Farmer Basic Income and Youth Basic Loan are policy initiatives derived from the 'Basic Income' and 'Basic Finance' programs promoted by Lee Jae-myung, the Democratic Party presidential candidate and former governor of Gyeonggi Province.
The Farmer Basic Income system provides individual farmers with 50,000 KRW per month or 150,000 KRW quarterly (every 3 months) in local currency issued by the city or county. The focus is on payments to individuals rather than households.
The Youth Basic Loan is a financial support program that offers loans of up to 5 million KRW per person over 10 years at interest rates lower than the average market bank rates, regardless of the youth's income or assets.
Gyeonggi Province has started disbursing the Farmer Basic Income this month in six cities and counties within the province: Pocheon, Yeoju, Anseong, Icheon, Yeoncheon, and Yangpyeong.
The eligibility criteria include farmers who have resided in the respective city or county for three consecutive years or a total of ten years, have engaged in farming activities for at least one year, and whose annual comprehensive income outside of agriculture is less than 37 million KRW. The funding for the Farmer Basic Income is shared equally between Gyeonggi Province and the six respective cities and counties. Previously, the province and the six local governments secured a total budget of 35.2 billion KRW for this purpose.
The total number of recipients confirmed for the fourth quarter of this year (October to December) in the six cities and counties is 81,473. By region, the numbers are as follows: Pocheon City 11,342; Yeoju City 14,498; Anseong City 16,590; Icheon City 16,999; Yeoncheon County 6,063; and Yangpyeong County 15,981.
The province plans to expand the Farmer Basic Income payment areas from six this year to 17 next year. To this end, it has prepared a budget of 156 billion KRW (including provincial and local government shares) for next year’s project and recently submitted it to the provincial council. The project budget will be finalized at the provincial council meeting on the 13th of next month.
A provincial official emphasized, "We will actively collaborate with the cities and counties to ensure that the Farmer Basic Income system, which guarantees stable income for farming households and enhances the public functions of agriculture, is well established."
Starting next year, the province will also implement the Youth Basic Finance program, including the Youth Basic Loan, which offers loans of up to 5 million KRW per person to residents aged 25 to 34 within the province.
Youth Basic Finance is divided into Basic Loans (small, low-interest, long-term loans) and Basic Savings (special deposit accounts with flexible deposits and withdrawals). The province will first implement the Basic Loans, which have a clear outline. The Basic Loan is a financial support policy that provides loans of 5 million KRW per person over 10 years at interest rates around 3% per annum, linked to procurement rates, and lower than the average market bank rates, regardless of the youth’s income or assets. The repayment period is 10 years.
The supply scale of Basic Loans provided by participating financial institutions is 1 trillion KRW in the first year of the project, next year. The province plans to provide a total of 3 trillion KRW over five years until 2026.
If loan repayments are not made, the province plans to reimburse financial institutions for losses through the 'Basic Finance Fund.'
The province estimates that the total number of eligible youth in the province will reach 1.82 million, with 200,000 (11%) expected to utilize the loan.
The province has prepared and submitted the budget for the Youth Basic Loan implementation next year to the provincial council. Once the budget passes the council, the province will proceed with public recruitment of project operators, selection of financial institutions, and signing of agreements to begin implementation next year.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
