Financial Services Commission Emphasizes Easing Financial Burden on Ordinary People and Supporting Housing Stability Next Year

Consumer Protection Budget Greatly Increased... Next Year's Budget Expanded by 48.6 Billion Won

[Asia Economy Reporter Lee Kwang-ho] The Financial Services Commission (FSC) has decided to focus on financial support aimed at alleviating the financial burden on low-income households and ensuring housing stability next year. To this end, it has expanded the budget for financial consumer protection and housing finance support and submitted it to the National Assembly.

According to the "2022 FSC Budget and Fund Operation Plan Review Report" by the National Assembly's Political Affairs Committee on the 17th, the FSC set its policy vision for next year as "Finance that turns crisis into opportunity, finance that creates a new leap forward, and finance with the people," establishing four strategic goals.

The four strategic goals are ▲ strengthening financial support for the real economy to create jobs ▲ enhancing financial support to alleviate the financial burden on low-income households and ensure housing stability ▲ promoting the advancement of the financial industry and establishing strict market order ▲ building a robust financial administrative system.

Specifically, the plan includes revitalizing the national economy by supporting the growth of innovative companies and promoting balanced development of rural economies by utilizing the credit guarantee fund for agricultural, forestry, and fishery workers. It also includes supporting companies to smoothly raise necessary funds by utilizing the credit guarantee fund. Additionally, the FSC aims to promote financial innovation by supporting the fintech industry and to advance anti-money laundering systems.

In particular, by protecting financial consumers, the FSC expressed its commitment to alleviating the financial burden on low-income households and promoting the stable supply of housing finance through the Korea Housing Finance Corporation. To this end, the budget for financial consumer protection next year was set at 48.8 billion KRW, an increase of 48.6 billion KRW from this year's original budget of 200 million KRW. The housing finance support budget was also increased by 10 billion KRW from this year's original budget of 50 billion KRW to 60 billion KRW.

This is intended to reduce housing costs for low-income households through the supply of policy mortgage loans (such as the Bogeumjari Loan) and to mitigate the risk of rising interest rates by expanding long-term fixed-rate loans. It is analyzed that an investment of 60 billion KRW will increase supply capacity by 2.4 trillion KRW and allow an additional 15,000 households to benefit.

Meanwhile, the FSC's budget proposal for next year is 3.45 trillion KRW, a decrease of 255.2 billion KRW compared to the previous year. The National Assembly began full-scale review of the government's budget proposal for next year on the 16th. Once the budget subcommittee's resolution is made, the budget will be finalized through comprehensive review and plenary session. The legal deadline for budget approval is July 2.

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