"Industrial Accident Workers' Living Stability Fund Loan Interest Rate Reduced to 1.25%...Easing Economic Burden"

Korea Workers' Compensation and Welfare Service

[Asia Economy Reporter Kim Bo-kyung] The Korea Workers' Compensation and Welfare Service announced on the 22nd that it has lowered the interest rate on living stabilization fund loans from the previous annual 2.0% to 1.25% to alleviate the economic burden of low-income industrial accident workers struggling due to the COVID-19 pandemic.

With this interest rate reduction, about 1,700 industrial accident workers and their bereaved families are expected to benefit from reduced interest this year.

The living stabilization fund loan for industrial accident workers is a system that provides unsecured, long-term, low-interest loans for essential living expenses such as medical expenses, wedding expenses, funeral expenses, vehicle purchase costs, housing relocation costs, and employment stabilization funds, tailored to the timing of need for low-income industrial accident workers and their bereaved families.

It targets those whose average monthly income is below 3.87 million KRW (the median income for a three-person household this year), including first-priority beneficiaries of bereavement benefits (bereaved families), recipients of injury compensation pensions, those rated disability levels 1 to 9, and those diagnosed with carbon disulfide disease who have been receiving long-term care for more than five years.

Repayment methods can be chosen among equal principal repayments with a 1-year grace period and 4 years of repayment, a 2-year grace period and 3 years of repayment, or a 3-year grace period and 2 years of repayment. The loan limit is up to 20 million KRW per household (10 to 15 million KRW per loan type), and the borrower separately bears the credit guarantee fee (annual 0.7%).

Early repayment is possible without any separate prepayment penalty depending on the economic conditions of the industrial accident worker. Loan applications can be made through the Workers' Welfare Service website or by visiting the nearest branch office.

Kang Soon-hee, Director of the Korea Workers' Compensation and Welfare Service, said, "We will continue to ease loan support requirements and expand the target group so that low-income industrial accident workers facing economic difficulties can maintain a stable life and reduce household burdens."

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