The Democratic Party Revives 'Jaehyeong Savings' for Working-Class Asset Building... Deposit Insurance Limit Raised to 100 Million Won

People Power Party's 'New Hope for Common People and Small Business Owners' Pledge
ISA Tax-Free Limit Raised from 2 Million Won to 5 Million Won
Onnuri Gift Certificate Annual Issuance Increased from 50 Trillion Won to 100 Trillion Won

The People Power Party is pushing for the reintroduction of high-interest Worker Asset Formation Savings (Jaehyeong Savings), which are exempt from interest income tax. They plan to raise the tax-exempt limit for Individual Savings Accounts (ISA) from the current 2 million won to 5 million won. Additionally, they aim to increase the deposit protection limit from the current 50 million won to 100 million won to strengthen the inflow of deposits into financial institutions.

On the morning of the 30th, the People Power Party announced these plans as part of their "New Hope for the Working Class and Small Business Owners" pledge at the National Assembly. This pledge is the party’s third major election promise, focusing on strengthening asset formation for the working class and expanding financial support for small business owners.

First, they will promote the reintroduction of Jaehyeong Savings, which exempts interest income tax to help young people in their 20s and 30s build assets and middle-aged people in their 40s and 50s prepare for retirement. Jaehyeong Savings was introduced in 1976 as a financial product offering high interest rates of over 10% annually. It was revived by the government in 2013, but without government subsidies, only providing tax exemption benefits. Now, 10 years later, as most Jaehyeong Savings accounts have matured and many have moved to savings and time deposits, the plan is to reintroduce it to help citizens build assets.

Yoon Jae-ok, floor leader of the People Power Party, is speaking at the floor countermeasure meeting held at the National Assembly on the 30th. Photo by Kim Hyun-min kimhyun81@

They also pledged to raise the tax-exempt limit for ISAs from the current 2 million won (4 million won for the working-class type) to 5 million won (10 million won for the working-class type). An ISA is an integrated account that allows various financial products to be managed within one account, providing tax benefits. Currently, up to 2 million won annually is tax-exempt, with amounts exceeding that subject to a 9.9% separate taxation. The party is discussing increasing the tax-exempt limit. The current deposit protection limit of 50 million won will also be raised to 100 million won. This is intended to safely attract more deposits to financial institutions, ensuring benefits for small depositors as well.

Financial support measures for the working class will also be strengthened. A comprehensive financial platform for the working class will be established to provide one-stop support from product inquiry to loan execution. The loan target for middle- and low-credit borrowers will be shifted from the existing final balance to the average balance to prevent them from turning to private loans. Additionally, they will pursue △ improvements to early repayment fees △ shortening the public information registration period for debt adjustment borrowers by one year △ invalidating loan contracts related to antisocial illegal debt collection.

Support for revitalizing small business owners will also be undertaken. The use of Onnuri gift certificates will be expanded to neighborhood commercial districts, and the annual issuance target will be raised from 5 trillion won to 10 trillion won. Furthermore, plans include △ establishing a 50% income deduction for credit card usage by small business stores △ doubling support for small business guarantees and policy funds △ extending the repayment period for refinancing guarantees by up to twice as long.

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