‘Lowering Loan Shark Interest Rates’ Promise by Lee Jae-myung... Yoon Chang-hyun Says, “Finance Is Not Charity” Direct Hit

Lee Jae-myung's plan to lower loan shark interest rates
"Don't drag finance into the realm of charity"
"'Interest' is the price for using funds"
"Lowering the price of money will cut off funding supply"
"Will ensure the president cannot set maximum interest rates arbitrarily"

[Asia Economy Reporter Koo Chae-eun] Yoon Chang-hyun, a member of the National Assembly's Political Affairs Committee from the People Power Party, criticized Gyeonggi Governor Lee Jae-myung's remark about "lowering the interest rates on private loans," saying, "Finance is not an act of charity." He added that after the maximum interest rate was lowered by 4 percentage points in 2018, the number of users driven to illegal private loans increased by 50%, which actually expanded the illegal financial market. He also emphasized that finance should not be confused with charity.

Yoon, a financial expert, criticized Lee's statement on MBC Radio's "Politicianssa" program the day before, where Lee said, "If I become president, I will be the first to drastically lower the interest rates on private loans. This is a matter of revising the enforcement decree under the president's jurisdiction," saying, "It seems that the concepts of financial policy and cash welfare policy have not yet been fully established."

He said, "The government must be very cautious when intervening in price determination," adding, "If you tamper with prices, distortions occur. Ideally, it might be good to provide 0% interest funds to those in need, but finance is not an act of charity."

He explained that "loan → interest collection → principal recovery" must continue for the next person to receive support, but excessive intervention in the interest rates set by the market damages the function of capital supply. Yoon said, "If you drag finance into the realm of charity and mix them, finance itself collapses, causing widespread confusion," and added, "You must not overlook that 'interest is a fee for the use of funds, essentially a kind of price.'" He emphasized, "If prices are set too low, supply disappears. The capital market is no different. If interest rates are too low, capital supply decreases or disappears, leaving no way to get loans."

Yoon further stated, "You must once again remember the lesson that 'excess is as bad as deficiency,'" and said, "I intend to express my position by submitting a bill that prevents the president from arbitrarily setting the maximum interest rate. How desperate must I be to propose such legislation?"

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