Financial Services Commission Expands 'Haetsalron Youth' Supply to 300 Billion Won... Also Increases Eligible Recipients

The Financial Services Commission announced on the 4th that it will expand the supply scale and support targets of 'Haetsalron Youth' starting this month. Haetsalron Youth is a policy-based financial product aimed at alleviating financial difficulties for low-income youth with an annual income of 35 million KRW or less.

First, the Financial Services Commission will increase the supply plan for this year from 200 billion KRW to 300 billion KRW so that more low-income youth in need of funds can use Haetsalron Youth. The support target will also be expanded from this month to include low-income young entrepreneurs within one year of starting their business. Until now, only unemployed youth or youth employed at small and medium-sized enterprises for less than one year could use Haetsalron Youth. Accordingly, they can receive up to 3 million KRW once for living expenses and up to 9 million KRW once for purposes such as purchasing goods.

The interest burden on Haetsalron Youth for socially vulnerable youth such as basic livelihood security recipients, near-poverty groups, self-support workers, single-parent families, and grandparent-headed families will also be eased. Through the revision of the enforcement decree, starting from the second quarter of next year, the government will support 1.6 percentage points (p) of bank interest with public funds, allowing loans to be used at ultra-low interest rates in the 2% range.

The financial authorities also plan to hold a Financial Education Council around the 25th, where various financial institutions and organizations will gather to discuss ways to enhance financial education. At the council, financial education tailored to the youth’s level will be improved by providing essential information for loans or investments through shorts, influencer videos, and other formats. Additionally, a system will be established to systematically manage financial education, which is currently conducted individually and sporadically by various organizations.

In particular, since 'Finance and Economic Life' will be added as an elective subject in the high school curriculum starting next year, the plan is to strengthen promotion targeting students and schools to encourage selection of this course and ensure that financial education is firmly established within public education.