[Exclusive] ‘Lee Jae-myung Style’ Basic Loan Bill to Be Introduced

Bill Proposed Following Basic Housing and Basic Income
Long-term Low-interest Loans Under 10 Million Won
Aimed at Preventing Financial Stratification and Guaranteeing Financial 'Basic Rights'

[Image source=Yonhap News]

[Asia Economy Reporter Koo Chae-eun] A bill related to the ‘Basic Loan,’ one of the basic series (Basic Income, Basic Housing, Basic Loan) proposed by Lee Jae-myung, the leading presidential candidate from the ruling party and Governor of Gyeonggi Province, is expected to be submitted to the National Assembly as early as this month.

According to political circles on the 1st, Kim Byung-wook, a member of the ruling Democratic Party and the floor leader of the National Assembly’s Political Affairs Committee, is preparing to submit a bill related to the Basic Loan. The Basic Loan is a system designed in Gyeonggi Province to guarantee that all citizens can borrow a certain amount at a fair interest rate regardless of income, assets, or credit, ensuring the financial ‘basic right.’

The key point is to provide an opportunity to borrow less than 10 million KRW at an interest rate in the 3% range for a long term of 10 to 20 years, minimizing moral hazard. The idea is to offer the low-interest long-term loan opportunities currently enjoyed by high-net-worth individuals and high-income earners to all citizens. The structure involves local government credit guarantee foundations fully guaranteeing the loans to prevent banks’ risk of default in case of delinquency.

Regarding the Basic Loan, Governor Lee stated on Facebook last March, “Since last year, we have been providing ‘ultra-low credit loans’ ranging from 500,000 to 3 million KRW with a budget of 50 billion KRW to low-credit residents excluded from financial institution benefits due to credit rating systems,” adding, “The purpose is to ensure that the benefits of taxpayer-funded financial support reach all taxpayers, not just a selected few.”

Meanwhile, the core policies of Governor Lee’s ‘Basic Series (Basic Income, Basic Housing, Basic Loan)’ are seeing active legislative movements in the National Assembly. Democratic Party lawmaker Roh Woong-rae has proposed the ‘Special Act on Promoting the Supply of Land-Separated Sale Housing,’ which includes Lee’s Basic Housing agenda, and fellow party member Lee Kyu-min has submitted a revision bill to the ‘Public Housing Special Act’ to support long-term rental and sale-type Basic Housing. Basic Income bills have been introduced by Jo Jung-hoon of the Transition Korea party and So Byung-hoon of the Democratic Party, respectively, under the title ‘Basic Income Act.’

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