Kim Dongyeon: "Ultra-Low Credit Loans Are the Way Forward... I Will Further Develop the Program"

Kim Dongyeon, Governor of Gyeonggi Province, announced his intention to further develop the "ultra-low credit loan" program that was initiated during President Lee Jaemyung's tenure as Gyeonggi Governor. The Gyeonggi Ultra-Low Credit Loan program is a comprehensive initiative that not only provides financial support but also includes debt management, counseling, and assistance for social reintegration.

Governor Kim emphasized that ultra-low credit loans represent a necessary path for the South Korean economy. He also addressed recent media reports claiming that the delinquency rate for ultra-low credit loans is as high as 74 percent, stating that this was a clear misreport. He explained that the figure "74" includes loan renewals and other re-contracts (35.3 percent), not just delinquencies.

Before departing for a business trip to China, Governor Kim invited three users of the ultra-low credit loan program to his office on the 22nd for a meeting. He remarked, "Recently, there has been a lot of talk about ultra-low credit loans, and some people disparage this system. However, for those in difficult circumstances, this program serves as the last resort that the public or society can offer, the final helping hand extended to them."

He added, "If this system becomes established, it will also help prevent damage from illegal private lending. For this reason, I have declared 'Ultra-Low Credit Loan 2.0,' which advances the existing program."

Gyeonggi Province Governor Kim Dongyeon is holding a meeting with ultra-low credit loan borrowers on the 22nd in the governor's office. Provided by Gyeonggi Province

He went on to say, "In life, sometimes just a small helping hand at a critical moment can create a good opportunity. Even if it seems insignificant, for those in extreme situations, it can feel like rain in a drought. It also makes them realize that they live in a country with systems that care for them. I am pleased that ultra-low credit loans have played such a significant role."

He particularly expressed his hopes by saying, "With Ultra-Low Credit Loan 2.0, we will once again create valuable opportunities. The 'financial rain' that fell during the 7th popularly elected administration (under former Governor Lee Jaemyung) will continue in the 8th administration as well."

Meanwhile, the stories of ultra-low credit loan users who attended the meeting were also shared.

Kim Gwangchun, age 66, lives with his grandson, a first-year middle school student, and his granddaughter, a fourth-grade elementary school student, forming a grandparent-grandchildren household. During the COVID-19 pandemic in 2020, Mr. Kim lost sight in one eye and had difficulty with one leg, making it impossible for him to earn an income. Faced with these circumstances, he turned to the Gyeonggi Ultra-Low Credit Loan program and received a loan of 500,000 won. For Mr. Kim, this money was more than just living expenses-it was a lifeline.

Along with the loan, Mr. Kim received post-loan counseling from Gyeonggi Province, which provided information about public work opportunities at the local community center. Additionally, he was able to access child care services for his grandchildren by applying to a local children's center.

Although Mr. Kim was unable to take part in public work, through the loan counseling process he was selected as a recipient of basic livelihood support and began receiving living allowances.

Mr. Kim said, "Raising my grandchildren alone, there were times when they asked me to buy something at the store, but I didn't even have 1,000 won on hand. I put aside any embarrassment and asked the province if I could get an ultra-low credit loan, and they said I could. I used the money very carefully over two months."

He added, "I am extremely grateful." On September 18, Mr. Kim fully repaid the 500,000 won loan in five installments.

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