Financial Companies to Increase 'Seomin Geumyung Contributions' Until the End of 2025

Amendment to the Enforcement Decree of the Act on Support for Ordinary People's Financial Life Approved at Cabinet Meeting
Aiming to Establish a Policy Foundation for People's Finance... Securing Additional 103.9 Billion Won
Bank 0.03→0.035%, Insurance, Mutual Finance, Specialized Credit, Savings Banks 0.03→0.045%

Financial Services Commission Chairman Kim Byung-hwan is delivering opening remarks at the 'User Meeting for Comprehensive Support for the Underprivileged' held on the 7th at the Credit Recovery Committee's main conference room in Jung-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

The common contribution rates of financial companies for establishing a stable policy-based low-income financial foundation will be increased until the end of next year.

On the 24th, the Financial Services Commission announced that the amendment to the Enforcement Decree of the "Act on Support for the Financial Life of Low-Income People," which includes this content, was approved at the Cabinet meeting.

Currently, the contribution rate that financial companies pay to the Korea Inclusive Finance Agency is 0.03% of household loan amounts. However, according to the amendment, banks will be temporarily subject to a rate of 0.035%, and insurance companies, mutual finance, specialized credit finance, and savings banks will be subject to 0.045% until the end of next year. The FSC explained that considering the banks' contribution of 221.4 billion KRW to the Korea Inclusive Finance Agency as part of win-win finance, different common contribution rates will be applied by sector.

Additionally, a temporary measure to reduce differential contributions for financial companies actively handling policy-based low-income finance will be introduced. Differential contributions are currently imposed at 0.5?1.5% based on the credit guarantee balance of each financial company, reflecting the level of subrogation payment, but there have been concerns that the contribution burden may increase depending on the handling of policy-based low-income finance. Accordingly, the amendment evaluates the supply performance of policy-based low-income finance and lowers the differential contribution rates for excellent financial companies.

The FSC explained, "Through this amendment, an additional guarantee fund of 103.9 billion KRW for supplying policy-based low-income finance will be secured, providing active incentives for the financial sector to handle such finance."

The Enforcement Decree of the Low-Income Finance Act, approved at the Cabinet meeting on this day, will take effect from the date of promulgation.