Loan for Worker Living Stability Fund Expanded to Monthly Income of 3.88 Million Won... Support for 18,000 People

Asia Economy DB=Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kim Bo-kyung] The government's income condition for the 'Living Stabilization Fund Loan' to ensure workers' livelihood stability will be relaxed from a monthly average income of 2.59 million KRW or less to workers earning 3.88 million KRW or less until the end of July.

The Ministry of Employment and Labor and the Korea Workers' Compensation and Welfare Service announced on the 9th that this measure was prepared to stabilize the livelihood of workers struggling due to the spread of the novel coronavirus infection (COVID-19).

The income requirement for the Living Stabilization Fund Loan will be temporarily relaxed from a monthly average income of 2.59 million KRW or less to 3.88 million KRW or less from today until July 31. The loan budget has increased by 21.8 billion KRW to 110.3 billion KRW, and the support target has expanded by 5,200 people to 18,000 people.

In particular, special-type workers (teukso hyeongtae geunrosajosa) such as insurance planners, private tutors, and card solicitors who have frequent direct contact with customers will not be subject to the income requirements for the Living Stabilization Fund Loan during the same period. However, special-type workers who are not covered by industrial accident insurance are not eligible for the loan.

The Living Stabilization Fund Loan is a system that lends up to 20 million KRW per person (2 to 12.5 million KRW per loan category) at an unsecured ultra-low interest rate (1.5% per annum) to low-income workers or special-type workers for necessary living expenses such as weddings, funerals, and illnesses of themselves and their dependents.

Workers or special-type workers whose monthly salary has decreased by 30% or more due to unpaid leave or suspension measures caused by COVID-19 damage to companies can use wage reduction livelihood loans or small livelihood loans, and workers who have not received wages due to business difficulties of companies can use wage arrears livelihood loans.

Loan applications can be made through the Korea Workers' Compensation and Welfare Service website. Essential documents such as medical expense receipts, medical certificates, and death certificates required for the application should be submitted by mail to the regional headquarters or branch offices of the Korea Workers' Compensation and Welfare Service.

The Korea Workers' Compensation and Welfare Service will notify the loan decision within three days after reviewing the loan eligibility. Applicants can receive the loan immediately through Industrial Bank of Korea's internet banking.

Kim Dae-hwan, Director of Labor Standards Policy at the Ministry of Employment and Labor, said, "We hope that this relaxation of income requirements for the Living Stabilization Fund Loan will reduce the household burden of workers struggling due to COVID-19 and help their livelihood."

This content was produced with the assistance of AI translation services.