Hong Nam-ki: "Sufficient Limits Granted for Low-Income Real Demand Funds"

"Urging the Inclusive Role of Finance and Orderly Normalization"

Hong Nam-ki, Deputy Prime Minister for Economy and Minister of Strategy and Finance. (Image source=Yonhap News)

[Sejong=Asia Economy Reporter Moon Chaeseok] Hong Nam-ki, Deputy Prime Minister for Economic Affairs and Minister of Strategy and Finance, stated on the 4th, "While striving for the stable management of household debt, we will provide sufficient limits to ensure that funds for the actual demand of low-income groups are supplied without disruption."

Deputy Prime Minister Hong made these remarks during the '2022 New Year's Address for the Financial Sector' held on the same day. He emphasized the need for an orderly normalization of the continuous inclusive role of finance and the temporary financial support provided during the COVID-19 response.

He urged the financial sector, "The government will supply more than 10 trillion won in policy finance for low-income groups this year and support ultra-low interest funds amounting to 35.8 trillion won for small business owners. We hope you actively expand mid-interest loans for middle and low credit borrowers, activate the right to request interest rate reductions, implement debt adjustments for vulnerable groups, and support business recovery."

He added, "Among the temporary crisis response measures implemented during the COVID-19 period, those that have fulfilled their purpose should gradually be normalized. During this orderly normalization process, please carefully consider shock absorption or soft landing by aligning with economic and financial market trends as well as quarantine and livelihood conditions."

He also called for thorough risk management of household debt and other risks. Deputy Prime Minister Hong said, "Please meticulously ensure that efforts such as managing the household debt growth rate target (4-5%) this year and expanding installment repayments to improve qualitative soundness are firmly implemented on the ground. The government will also work with the financial sector for the stable management of household debt and provide sufficient limits to ensure that funds for the actual demand of low-income groups are supplied without disruption."

He further stated, "Attention must be paid to the increased debt repayment burden due to rising market interest rates and asset price fluctuations. In particular, please strengthen the financial sector's self-inspection efforts to prevent significant market impacts during the adjustment process of abundant liquidity increased during the low-interest and crisis response period."

He also stressed the need to create new growth engines for the financial industry. He said, "The government will focus on creating an environment conducive to investment and business by providing fiscal support, institutional improvements, and expanding policy finance to foster future growth industries such as our core industries, BIG3, and the materials, parts, and equipment industries. We expect the financial sector to play an active and leading role."

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