[2025 Audit] Art-Loan Takes 20 Days for Disbursement... "Slower Than Banks"

Yang Moonseok: "7 Million Won Limit Is Insufficient"
"Exclusion Without Certification"?Private Sector Offers Flexible Support

Yonhap News Agency

Concerns have been raised that the "Art-Loan" program, operated by the Korea Artists Welfare Foundation, is ineffective due to its narrow eligibility criteria and slow disbursement process.

According to data released on October 22 by Assemblyman Yang Moonseok of the National Assembly's Culture, Sports and Tourism Committee, a total of 11,325 artists have received living stabilization loans over the past five years, with the total loan amount reaching 94.794 billion won.

The main issue is that the procedures are excessively complicated. Applications can only be submitted during designated periods, and multiple steps are required, including review, notification, document submission, and electronic agreement. The time from the application deadline to actual loan disbursement is about 20 days. This is a stark contrast to commercial banks, where online applications can be processed within a day.

The support limits are also restrictive. The maximum amount for living stabilization loans is 7 million won, and for emergency living loans, it is 5 million won, which is far from sufficient to address the crisis situations faced by artists in unstable employment and income environments. Loan eligibility is also limited to artists who possess an Artist Activity Certificate, excluding emerging artists or those unable to obtain certification due to irregular activities.

In fact, the issuance rate of Artist Activity Certificates has dropped from 67% in 2020 to 31% this year, nearly halving. The foundation only provides information about other policy funds, such as those from the Korea Inclusive Finance Agency, to artists who do not have the certificate. This is because, under the Artists Welfare Act, support is limited to those who possess the Artist Activity Certificate.

The private sector offers more flexible support. A representative example is the "Artists Mutual Aid Loan" by the Korea Smart Cooperative Association. Regardless of Artist Activity Certificate status or credit score, it provides low-interest emergency funds at an annual rate of 5%. As of September this year, cumulative loans exceeded 700 million won, which has resulted in a reduction of about 100 million won in interest burden.

Assemblyman Yang stated, "It is questionable whether a loan that takes more than 20 days can truly be called a 'living stabilization fund,'" and added, "To address the blind spots for those without an Artist Activity Certificate, it is necessary to benchmark mutual aid models from the private sector."