National Unity Committee: "Partial Interest Refund Should Be Given If Policy Loans Are Repaid Without Delay"

Kim Han-gil, Chairman of the National Integration Committee, is speaking at the Special Committee Performance Report Meeting on Approaching Inclusive Finance held at the Government Seoul Office in Jongno-gu, Seoul, on the 18th.
[Photo by Yonhap News]

The Presidential Committee on National Integration proposed the introduction of an 'Interest Payback' system to encourage diligent repayment of policy loans by low-income citizens.

They also explained the need to promote the introduction of bank agency services to allow post offices to replace the decreasing number of bank branches.

The Committee's Special Committee on 'Approaching Inclusive Finance' held a performance report meeting at the Government Seoul Office on the morning of the 18th and announced these details.

The Special Committee suggested providing an interest payback, which returns part of the interest if the full amount is repaid without delinquency, to reduce the default rate of policy loans and encourage diligent repayment.

Along with this, they proposed promoting the introduction of bank agency services at post offices, which have a nationwide network of 2,500 branches, enabling not only simple tasks such as deposits, withdrawals, and balance inquiries but also various banking services including account opening.

This aims to address the financial service blind spots for vulnerable groups amid the rapid decrease in the number of bank branches and ATMs.

Regarding the recent surge in illegal private loans, the committee emphasized that these are social evils threatening the livelihood and safety of low-income citizens and called for strict government-wide measures.

The policy proposals announced by the Special Committee will be supplemented through inter-ministerial consultations and then reported to President Yoon Suk-yeol for final confirmation.

Kim Han-gil, Chairman of the National Integration Committee, said, "The delinquency rate among self-employed individuals has risen to its highest level in 11 years, and the reality for vulnerable groups remains difficult," adding, "We hope to alleviate their difficulties even a little through the warmth of inclusive finance."