[2020 National Audit] "Living Stability Fund Loans Are a 'Pie in the Sky' for Low-Credit Artists"

Source: Office of Assemblyman Yoo Jung-joo

[Asia Economy Reporter Kim Heung-soon] The small loan program operated to support the livelihood stability of artists has been criticized as useless for those with low credit ratings.

According to the National Assembly Culture, Sports and Tourism Committee member Yoo Jeong-ju of the Democratic Party of Korea, who disclosed the National Audit data of the Arts Welfare Foundation on the 19th, 68 artists with credit ratings of 9 to 10 applied for livelihood stabilization funds from 2019 to the end of August this year, but none received support. Among artists with a credit rating of 8, 144 applied, but only 30 artists, or 20.8%, actually received support.

In the special loans related to the novel coronavirus disease (COVID-19) implemented from March to May this year, a total of 1,324 people applied and 1,090 received loans; however, none of the artists with credit ratings of 9 to 10 received support, and only 8 artists (0.7%) with an 8 rating were supported.

This loan policy, called the Artist Livelihood Stabilization Fund Support Project, started in June last year to help artists who are in the blind spots of the financial system. Artists who have received certification of artistic activity can apply, and loans of up to 5 million KRW (up to 3 million KRW for emergency living expenses) are available for emergency living expenses, marriage expenses, tuition, medical expenses, parental care expenses, funeral expenses, etc. A total of 3,815 artists benefited, including 1,189 in 2019 and 2,626 in 2020.

Rep. Yoo pointed out, "The Arts Welfare Foundation only supports up to credit rating 8 and does not support those with ratings 9 to 10 due to difficulties in recovery," adding, "The livelihood stabilization fund support project based on the Arts Welfare Act acts as another insurmountable barrier for low-credit artists."

He emphasized, "Supporting based on credit rating for the purpose of loan recovery is no different from commercial banks," and "The Arts Welfare Foundation needs to reconsider the purpose of the support measures."

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