High-Interest Loan Interest Reduction of 300 Billion Won... Youth Monthly Rent Support Extended for 1 Year

With the Yoon Suk-yeol administration's budget for next year finalized at 656.6 trillion won, the government has decided to strengthen support for low-income earners and socially vulnerable groups. It will partially reduce high-interest loan interest for small business owners and provide temporary support for the increased cost of tax-free fuel for farmers and fishermen. Additionally, the special monthly rent support for youth, which was scheduled to end this year, will be extended for one more year.

The Ministry of Economy and Finance announced on the 21st that the 2024 budget bill containing these measures was approved at the plenary session of the National Assembly.

The budget for livelihood economy and support projects for vulnerable groups has been significantly increased. First, to alleviate the interest burden on small business owners, partial loan interest amounting to 300 billion won will be reduced for vulnerable borrowers, and through a budget of 252 billion won, temporary support will be provided to micro small business owners for part of the increase in electricity charges.

To boost sales, the usage scope and issuance volume of Onnuri gift certificates will be expanded (69.5 billion won), and considering the conditions of local finances, temporary support of 300 billion won worth of local love gift certificates will be provided.

For 68,000 facility farmers and fishermen, partial support for the increased cost of tax-free fuel (11.5 billion won) and for 13,000 aquaculture fishermen, partial support for the increased agricultural electricity charges (5.6 billion won) will be provided temporarily in the first half of next year. Additionally, due to concerns over price increases caused by instability in raw material supply chains, partial support for the purchase cost of mineral fertilizers (28.8 billion won) has also been strengthened.

[Image source=Yonhap News]

To reduce the housing burden on youth, the special temporary support for youth monthly rent (200,000 won per month, up to one year), which was scheduled to end this year, will be extended for one more year (69 billion won). For youth participating in work experience programs in other regions, a new stay support allowance (200,000 won per month for 3 months) will be provided. The government plans to implement the newly established public transportation fare refund support project (K-Pass) earlier than planned (from July to May) and relax the refund conditions from 21 rides per month to 15 rides or more.

For persons with disabilities, the additional disability pension will be increased by 10,000 won for the first time since 2013 (totaling 26.9 billion won), and the monthly limit for commuting cost support for workers with severe disabilities will also be raised from 50,000 won to 70,000 won.

It is also noteworthy that the number of low-income elderly eligible for knee artificial joint surgery support has been expanded by 1,000 people. The unit price for formula milk and diaper support for basic livelihood security recipients, near-poor households, and single-parent families has also been increased by 10,000 won per month. A pilot project for caregiving support in nursing hospitals has been allocated a budget of 8.5 billion won. Additionally, 2 billion won will be provided to support medical equipment for specialized nursing hospitals for rare disease patients such as those with Lou Gehrig's disease.

The government plans to submit and approve the 'Consent for National Assembly's Increase of the 2024 Budget and Budget Announcement Plan' and the '2024 Budget Allocation Plan' at the Cabinet meeting scheduled for the 26th.

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