Financial Services Commission Allocates 3.5 Trillion Won Budget for Next Year... "Focus on Strengthening Finance and Supporting Vulnerable Groups"

[Asia Economy Reporter Park Sun-mi] The Financial Services Commission's budget proposal for 2022 has been set at 3.5 trillion KRW, a decrease of 400 billion KRW.

On the 3rd, the Financial Services Commission announced that the 2022 budget proposal was set at 3.5 trillion KRW, down 12.6% (400 billion KRW) from the previous year. The FSC's expenditure budget has been declining annually: 5.6 trillion KRW in 2020, 3.9 trillion KRW in 2021, and 3.5 trillion KRW in 2022.

The 2022 budget proposal is mainly structured around investment projects to support productive finance enhancement and aid for financially vulnerable groups. First, 640 billion KRW (investment from the Korea Development Bank) was allocated to a policy New Deal fund to strengthen productive finance. This is an increase of 130 billion KRW compared to this year.

146 billion KRW was allocated for fintech support, and 7 billion KRW for revitalizing the KONEX market. These amounts represent decreases of 3.8 billion KRW and 0.5 billion KRW respectively compared to this year.

Additionally, 60 billion KRW will be invested in the Korea Housing Finance Corporation to support financially vulnerable groups. Through the supply of policy mortgage loans (such as the Bogeumjari Loan), this aims to reduce housing costs for low-income households and expand long-term fixed-rate loans to mitigate interest rate rise risks. An investment of 60 billion KRW will increase supply capacity by 2.4 trillion KRW and allow an additional 15,000 households to benefit.

Furthermore, 47.6 billion KRW (contribution from the Korea Inclusive Finance Agency) was newly allocated to the Youth Hope Savings program, which provides incentives of 2-4% on new deposits to support asset formation for low-income youth aged 19 to 34. 1.1 billion KRW was also allocated to support the appointment of debt representatives.

An FSC official stated, "Through the 2022 budget proposal, we plan to thoroughly explain during the upcoming National Assembly review process how it supports productive finance enhancement and aid for financially vulnerable groups."

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