[2025 Audit] Kim Dongyeon: "Ultra-Low Credit Loan Was a Lifeline for Citizens Who Hit Rock Bottom"

Gyeonggi Province Governor Kim Dongyeon stated that the "Ultra-Low Credit Loan" program, introduced during former Governor Lee Jaemyung’s tenure, served as a lifeline for citizens who had hit rock bottom. He promised to soon introduce "Ultra-Low Credit Loan 2.0."

On October 21, at the National Assembly's Public Administration and Security Committee's audit of Gyeonggi Province held at the Gyeonggi Provincial Government, Governor Kim responded to Democratic Party lawmaker Shin Junghoon regarding a Chosun Ilbo report that criticized the high delinquency rate of the Ultra-Low Credit Loan program. Kim said, "That is completely incorrect," and explained, "25% of borrowers have fully repaid their loans, the delinquency rate is around 35%, and the remainder have extended their loan terms or taken similar measures."

He especially emphasized, "The Ultra-Low Credit Loan program provided a stepping stone for people to get back on their feet and was like a timely rain to those who had fallen into hardship."

Gyeonggi Province Governor Kim Dongyeon is speaking at the National Assembly's Public Administration and Security Committee's audit of Gyeonggi Province on the 21st. Provided by Gyeonggi Province

He added, "We have been managing the program well, but after the 12·3 Martial Law, the credit situation for ordinary citizens has become difficult again," and announced, "We are planning Ultra-Low Credit Loan 2.0."

Governor Kim stated, "There are a significant number of high-value delinquent taxpayers who owe more than 10 million won. We will respond firmly and raise the collection rate," adding, "If we collect 10 million won, we can support 20 people with 500,000 won each through the Ultra-Low Credit Loan program."

The Ultra-Low Credit Loan program was introduced during former Governor Lee Jaemyung’s term as a policy loan system for individuals with very low credit scores or those facing difficulties in financial transactions. From 2020 to 2022, 110,000 people used the program, and the interest rate was extremely low at 1% per year. However, controversy arose after some media outlets reported a delinquency rate of 74% for the program.

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