‘Household debt’ has been one of the most heatedly debated issues this year. As a countermeasure against the issues, FSC came up with various financial products and programs available for low-income households. This is because the low-income earners would feel the most vulnerable in regard to the household debt issues. Financial support for low-income households has been carried out in many different forms including micro finance, work-out programs, debt-rescheduling, and provision of financial advice and consultation.
With just one more page left for this year’s calendar, FSC did a check-up to see whether financial support for low-income households has been well managed. The figures show that more and more people have become the beneficiaries of the support measures.
During this year (from January to October), KRW 2.59 trillion was injected for microfinance. 83,046 low-income households in total were supported since the establishment of microfinance in July, 2008. The figures are really enormous and expected to further expand.
Moreover, the rate of overdue payment for microfinance is at a manageable level. This is because microfinance offers lower interest rates on loans, compared to other loans from savings banks. Many low-income households have difficulties making interest payments on time. Overdue payments are usual cases for low-income earners. Keeping this in mind, the current figure is under FSC’s control. However, FSC will precisely monitor the overdue payments, as a prolonged economic downturn can work as a threatening factor.
FSC is designing new measures as well. First, more financial experts will be invited to reinforce consultation and advice supports. Individuals, making a regular interest payment without delay, will be given an extra decrease in interest rate. This is to encourage more households to make their payments on time and prevent overdue payments. FSC is looking for two at once. One is managing risks in our economy by closely monitoring unsound factors. The other is providing more financial supports for low-income households. Keep your eyes on our blog posts, and see how this challenging task is dealt with FSC’s measures!