'Kim Dong-yeon Style Super Account'... Low-Interest Loans for 60,000 Gyeonggi Youth... Preferential Interest Rates on Savings

Gyeonggi Province Governor Kim Dong-yeon is attending the 'Gyeonggi Youth Startup Bridge Finance Account Delivery Ceremony' held at the Gyeonggi Provincial Government Office on the 11th and taking a commemorative photo with young people.

Gyeonggi Province will provide low-interest loans of up to 5 million KRW per person to 60,000 young people in the province. In particular, this financial policy product offers preferential interest rates for savings compared to commercial banks, which is expected to help young people increase their assets.

On the 11th, Gyeonggi Province held a ‘Gyeonggi Youth Bridge Finance Account Delivery Ceremony’ at the Gyeonggi Provincial Office, attended by Hana Bank, related organizations, and young people from Gyeonggi Province, announcing the launch of the Gyeonggi Youth Finance program.

The Gyeonggi Youth Bridge Finance is one of Governor Kim Dong-yeon's representative pledges, providing equal opportunities to young people regardless of their assets or income, supporting them to build their own credit history and maintain stable financial lives.

At the delivery ceremony, Governor Kim Dong-yeon said, "I wanted to show young people that there are financial products that help them," adding, "The loan interest rates are low and the savings offer preferential interest rates. Seeing that I want to sign up myself, I think this will be a good opportunity for young people."

He continued, "Gyeonggi Province is sincerely preparing and implementing many things for young people and plans to do much more in the future," emphasizing, "We will open our hearts to listen to young people's words and opinions and create projects together."

The eligibility for the Gyeonggi Youth Bridge Finance includes young people aged 25 to 34 who have been continuously residing in Gyeonggi Province for more than 3 years or have lived there for a total of more than 10 years as of the application date, and who have no records of delinquency, default, or tax arrears. Additionally, to support young people who are diligently working to recover their credit, those who have been repaying for more than 6 months after debt adjustment confirmation are also eligible to apply.

The total loan supply amounts to 300 billion KRW, benefiting 60,000 people. Gyeonggi Province plans to analyze the results and demands of the youth and adjust the project implementation plan to provide additional supply in the second half of next year.

From the 20th, applications will be accepted online through a 10-day rotation system based on birth dates for 29 days. The process is as follows: ▲Step 1: Apply online via Gyeonggi Minwon 24 (gg24.gg.go.kr), and if age and residence requirements are met, ▲Step 2: from the next business day, complete the review of delinquency status and open an account through Hana Bank’s webpage to start using the service. Step 2 must be completed within 30 days from the day after the Step 1 eligibility notification date.

The initial loan limit is 3 million KRW, and after one year, if the credit score is maintained or improved, the limit can be increased to 5 million KRW.

The interest rate for loans was 4.592% as of the 10th of this month and will be applied variably at COFIX (weighted average interest rate by banks) new + 0.932% level going forward.

The loan is provided under the same conditions regardless of employment status or asset level. Considering that young people with insufficient financial history often face loan rejections or have to bear high interest rates above 15%, this program is expected to help alleviate difficulties for young people who urgently need living expenses or job-seeking funds.

The savings interest rate was 2.7% as of the 10th of this month. Interest is paid monthly after account opening, and preferential interest rates apply up to 5 million KRW. Considering that typical demand deposit accounts in the market offer only about 0.1%, the ability to use this as a parking account (an account that allows free deposits and withdrawals with relatively high interest rates) is a major advantage of this product. Users can freely use the same account for both loans and savings in a way that suits them.

Gyeonggi Province will also support youth financial management programs such as online financial education to assist systematic fund management. Hana Bank, the executing agency, will select 100 users for overseas training in financial hub cities, and the Korea Inclusive Finance Agency will provide customized financial consulting for users.

Earlier in June, Gyeonggi Province selected Hana Bank as the executing agency through a public contest and negotiations.

Youth in Gyeonggi Province who wish to apply can refer to the ‘2023 Gyeonggi Youth Bridge Finance 1st Supply Plan Announcement’ posted in the notices section on the Gyeonggi Province website (gg.go.kr).

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