Recruitment of First 500 Applicants for 'Seoul Youth Stepping Stone Loan' Support

Support for up to 30 Million KRW Loan Interest at a Maximum Annual Rate of 7% When Switching to Prime Loans in First-Tier Financial Institutions

[Asia Economy Reporter Jo In-kyung] The Seoul Metropolitan Government is launching the 'Seoul Youth Stepping Stone Loan' product to help young people resolve debt issues and achieve sustainable financial independence, and will begin recruiting eligible applicants from the 18th.

This project, introduced for the first time in Korea in collaboration with fintech company PeopleFund Company and social contribution organization Hope Makers Company, provides interest support of up to 7% from the Seoul Metropolitan Government when young people who previously had to use secondary or tertiary financial institutions due to being unable to obtain loans from primary financial institutions switch to high-quality loans from primary financial institutions.

Any Seoul resident youth aged 19 to 34 with income can apply, and if they pass PeopleFund Company's loan screening criteria, they can receive differential interest support ranging from 2.5% to 7% within a maximum limit of 30 million KRW based on income brackets (according to the 2020 Seoul living wage of 2,199,307 KRW per month). Additionally, if they complete financial counseling and education provided by Hope Makers, a preferential interest rate (2%) will also be applied.

The loan funds can be used for education or job preparation expenses, housing costs, medical expenses, and more.

The city plans to recruit 500 applicants on a first-come, first-served basis from the 18th until the end of next year, with plans to increase the number of beneficiaries depending on the program's performance.

Youth wishing to participate can easily apply through the Seoul Youth Stepping Stone Loan page on the PeopleFund Company website. For detailed information such as required documents, please check the Seoul Metropolitan Government website or the Seoul Youth Portal, or contact the PeopleFund Company customer center.

Kim Young-kyung, head of the Seoul Youth Division, stated, "We hope this project will serve as a stepping stone for young people to escape the vicious cycle of high-interest loans by reducing their debt, strengthening financial capabilities, and restoring credit, thereby enabling them to be incorporated into the formal financial system."

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