Financial Services Commission's Budget for Next Year Confirmed at 3.4 Trillion Won

[Asia Economy Reporter Kim Jin-ho] The Financial Services Commission announced on the 3rd that the expenditure budget for next year has been finalized at 3.4 trillion won.

This amount is 500 billion won less than this year's main budget, and next year's budget will mainly be used to strengthen productive finance supporting innovative companies, stabilize the financial safety net for ordinary citizens, and implement consumer-centered financial systems.

First, to support the success of the "Korean New Deal," a 4 trillion won policy-type New Deal fund will be raised next year. To this end, the Korea Development Bank plans to invest 600 billion won. Using policy funds as seed money, large-scale private funds will be attracted to strengthen financial support for companies in the digital and green sectors, which are future growth engines.

A total of 14.6 billion won will be invested to promote the fintech industry and expand fintech by supporting digital financial innovation, fostering fintech companies, and training fintech personnel so that fintech companies can establish themselves as growth engines of Korea.

The financial safety net for ordinary citizens and consumer-centered financial systems will also be strengthened. First, a Youth Hope Savings account will be introduced. To this end, 47.55 billion won will be contributed through the Korea Inclusive Finance Agency.

This product is a two-year installment savings product with a maximum monthly deposit of 500,000 won, and in addition to the market interest rate, 2-4% of the deposit amount will be paid as a savings incentive. Interest income will be tax-exempt. This product is targeted at young people aged 19 to 34 with a total annual income of 36 million won or less.

To stably supply policy mortgages such as the Bogeumjari Loan, which are low-interest, long-term, fixed-rate loans, 50 billion won will be invested in the Korea Housing Finance Corporation. To support asset formation and stable living bases for farmers and fishermen, 26.62 billion won has been allocated as savings incentives.

A Financial Services Commission official explained, "We plan to faithfully execute the finalized budget to promote productive financial support, financial industry innovation, and the development of our financial sector and economic vitality."