Youth Microloan Support Scale to Double

The government will double the annual supply scale of Miso Finance, a low-interest policy loan, from the current 300 billion won to 600 billion won within the next three years. Financial Services Commission Chairman Lee Won-geun announced these youth support measures at the 3rd Grand Transition Meeting for Inclusive Finance held on the 23rd, stating that the policy aims to expand the scope of Miso Finance, which targets low-income individuals with low credit ratings, and alleviate their difficulties in raising funds.

Through this meeting, the Financial Services Commission confirmed measures to expand policy finance aimed at helping young people achieve economic independence. The proportion of Miso Finance loans allocated to young people under the age of 34 will be increased from the current approximately 10% to 50%, thereby increasing the annual loan volume supplied to youth to around 300 billion won.

Under the new support plan, the 'Youth Future Connect Loan' will be introduced, offering up to 5 million won at a 4.5% annual interest rate to high school graduates or unemployed youth. Additionally, the loan limit for Miso Finance to self-employed youth will be raised from the existing 20 million won to 30 million won. A new loan product will also be established to provide living expenses of up to 5 million won at a 4.5% annual interest rate to vulnerable groups who have faithfully repaid policy loans but face difficulties accessing institutional finance.

Three out of four new loan products, including the Youth Future Connect Loan, are scheduled to be launched within this month. An expanded interest subsidy for Miso Finance for young self-employed individuals residing in provincial areas will be implemented in the second quarter.