Increased by 237.8 billion KRW compared to this year... About 6%↑
17 billion KRW added to Saechulbal Gigeum... 28 billion KRW newly allocated for semiconductor support
The Financial Services Commission (FSC) has prepared the 2025 budget at 4.2408 trillion KRW, nearly 6% higher than this year. The budget focuses on projects to support finance for low-income and vulnerable groups, youth asset formation, regional economic revitalization, and securing future growth engines.
On the 9th, the FSC announced that next year’s general account expenditure budget will be 4.2408 trillion KRW, an increase of 237.8 billion KRW (5.94%) compared to this year’s expenditure budget. The New Start Fund budget was increased by 170 billion KRW from 330 billion KRW this year to 500 billion KRW next year, and 280 billion KRW was newly allocated to the semiconductor facility investment support special program and the semiconductor ecosystem fund.
By sector, major budgets to support finance for low-income people, small business owners, and vulnerable groups include the Small Business and Self-Employed Debt Adjustment Program (New Start Fund), 햇살론15 (Haetsal Loan 15), Special Guarantee for Lowest Credit Borrowers, and support for appointing debtor representatives. To provide broader support for struggling small business owners and self-employed individuals, 500 billion KRW was allocated to ensure the smooth implementation of the New Start Fund expansion plan announced through the comprehensive measures for small business owners and the self-employed.
A budget of 90 billion KRW was allocated for 햇살론15 (Haetsal Loan 15), a policy finance product for low-credit and low-income individuals. Based on this budget, the FSC and the Korea Inclusive Finance Agency plan to supply about 650 billion KRW next year. For the Special Guarantee for Lowest Credit Borrowers, a special guarantee product for the bottom 10% credit score group who find it difficult to use institutional finance, a budget of 56 billion KRW was allocated, with plans to supply about 170 billion KRW annually.
Additionally, the FSC and the Korea Inclusive Finance Agency allocated 375 billion KRW for the Youth Leap Account to help young people steadily accumulate assets through this account. The Youth Leap Account will continue to accept new monthly subscriptions next year, and subscribers will receive government contributions in addition to bank interest on their deposits, as well as tax exemption on interest income generated in the account.
A budget of 100 billion KRW was also allocated to establish a Regional Revitalization Investment Fund based on cooperation among the government, local governments, and the private sector. This aims to respond to the risk of regional extinction and support regional economic revitalization. Through the Regional Revitalization Investment Fund, the FSC plans for the public sector to provide seed money to induce private investment, with local governments and the private sector acting as project operators to support various types of regional revitalization projects.
280 billion KRW allocated to secure future growth engines including semiconductor ecosystem support
Major budgets to secure future growth engines include the semiconductor facility investment support special program, semiconductor ecosystem fund, innovation growth fund, and fintech support projects. The FSC allocated 280 billion KRW as funds for the 'Comprehensive Support Plan for the Semiconductor Ecosystem' jointly announced by related ministries in June. The 2025 budget includes 250 billion KRW for a low-interest loan program for advanced industries such as semiconductors through KDB Industrial Bank. Facility, R&D, and investment funds for semiconductor facility companies planning new domestic investments across all semiconductor sectors will be supported at interest rates at the lowest government bond level.
A budget of 30 billion KRW was allocated for the Semiconductor Ecosystem Fund, which supports investments by companies in the semiconductor materials, parts, and equipment (소부장, Sobujang) sector and fabless companies (specializing in semiconductor design) aiming for scale-up and mergers & acquisitions (M&A). The FSC expects to strengthen the overall competitiveness of the semiconductor ecosystem through the newly established Semiconductor Ecosystem Fund, totaling 120 billion KRW, consisting of 30 billion KRW in government funds, 30 billion KRW from the Industrial Bank, and 60 billion KRW from private funds.
A budget of 200 billion KRW was allocated to support the nurturing of innovative industries and supply growth funds to small and venture companies. Based on this, the FSC plans to establish an innovation growth fund worth 3 trillion KRW. Initially, 200 billion KRW in government funds will be used, along with 100 billion KRW recycled from previously invested and recovered government funds, and 600 billion KRW invested by the Industrial Bank, using a total of 900 billion KRW as seed money.
The FSC explained, "Through the 2025 budget, we will ensure robust financial support for low-income groups and youth and back the securing of future growth engines. We will thoroughly explain the necessity of the budget during the National Assembly deliberation process."
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