President Lee: "Debt That Follows You Until Death... Will Strengthen Public Responsibility in Finance"

President Lee Attends 'Digital Talk Live' to Hear Public Opinions on Livelihood Issues
Debt Relief for Small Business Owners and the Self-Employed
"Just as clearing old weeds allows new sprouts to grow, the community must act..."
"We must not forget the principles of community and become more generous"
Calls for Stronger Financial Support for Ordinary Citizens
"We need to fundamentally change our thinking about finance"
"Convert Onnuri Gift Certificate Budget to Expand Local Currency Usage"

President Lee Jae-myung stated that "the reality where debt follows you until death is not socially desirable," emphasizing the need for debt relief for small business owners and the self-employed. While some point out that debt forgiveness could lead to moral hazard, he stressed that, fundamentally, this is an issue that should be addressed by public finances, and resolving it would also help boost economic growth. Regarding financial institutions differentiating interest rates based on credit ratings, President Lee criticized the financial sector as "too ruthless" and called for strengthened policy loans and support for ordinary citizens.

President Lee Jae-myung is taking a commemorative photo with attendees after the digital talk live event "The Voice of the People Becomes Policy" at the Content Culture Square in Dongdaemun-gu, Seoul on the 14th. Photo by Yonhap News

On the 14th, during the "Digital Talk Live" event held to hear voices from the field regarding people's livelihoods and the economy, President Lee remarked, "Like advanced nations, unpayable debts should be swiftly forgiven and cleared, just as removing old weeds allows new sprouts to grow. I hope we can take a more reformative approach to financial issues." He also noted that there is significant room for policy adjustment. Dressed in a checkered jacket, President Lee sat at the center of the venue, listened to panelists' suggestions, shared his thoughts throughout the discussion, and directed his aides to conduct policy research.

President Lee once again highlighted the necessity of a debt relief policy for small business owners and the self-employed who have struggled during the COVID-19 pandemic. He said, "Other countries overcame the pandemic crisis by increasing national debt, but we shifted the burden onto individuals." He continued, "Due to various government-imposed restrictions such as business shutdown orders, operations were halted and debts increased, so this is a matter for public finances to handle." He added, "Although I want to pursue this, there is significant public resistance. If the public accepts that the state should bear the cost of overcoming crises, it will help with debt resolution."

Regarding financial companies, President Lee called for strengthening financial support for ordinary citizens. On the practice of differentiating interest rates based on credit ratings, he said, "Finance is too ruthless. While it may be inevitable under market principles, it is ultimately a matter of policy decisions." He further explained, "Financial companies earn about 30 trillion won in annual interest income, which is excessive. We are encouraging some of these companies to fulfill a public role." He emphasized, "Finance operates under state-issued licenses, exercises the state's monetary authority, and is protected by the state, so it should not be solely focused on profit. We must not forget the principles of community and need to be more generous. We must fundamentally change our thinking about finance." Smiling, President Lee added, "I have been heavily criticized and labeled a 'socialist' or 'communist' for making such statements," and stressed the need to actively persuade the public.

Kim Yongbeom, the Chief Policy Officer who accompanied President Lee, also commented, "Although it seems that interest rates are efficiently determined based on repayment ability, that is not the case. Polarization emerges, and those in the middle are left out." He pointed out, "Interest rates between 15% and 25% represent, as the President said, an extreme form of ruthless jungle capitalism."

President Lee Jae-myung is holding a digital talk live session titled "The Voice of the People Becomes Policy" at the Content Culture Square in Dongdaemun-gu, Seoul on the 14th. Photo by Yonhap News

President Lee also identified the excessively high proportion of self-employed individuals as an issue that needs to be addressed. He said that the structure of Korea's economy exposes the self-employed to excessive competition, stating, "It feels like an ant trap where someone takes over a failed business only to fail again. We need to change the nation's industrial and economic structure."

In addition, President Lee expressed his view that the budget for Onnuri gift certificates should be converted into local currency to revitalize regional economies. He said, "I am considering increasing both the support ratio and total amount for local currency compared to Onnuri gift certificates. Structuring it so that people in Busan spend in Busan and people in Gwangju spend in Gwangju will ultimately lead to balanced regional development." Onnuri gift certificates are issued by the Ministry of SMEs and Startups and can be used nationwide, while local currency is issued by local governments and can only be used within the region.

Meanwhile, President Lee actively responded to opinions shared by attendees at the event. When broadcaster Hong Seokcheon, who participated as a mentor, pointed out that tourism budgets are concentrated on monotonous projects, President Lee replied, "That is exactly what was discussed at yesterday's meeting with senior aides and advisors," and said he would consider the issue. Upon hearing criticism that support for "small manufacturers" is insufficient despite policies for small business owners, he acknowledged, "That is a valid point. In reality, we are only focusing on merchant policies," and instructed Chief Policy Officer Kim to review the matter. Regarding the proposal to introduce a "youth travel allowance," President Lee responded, "If we design it in detail, it seems like a policy worth trying."