President Moon Jae-in speaks at a meeting of chiefs and aides at the Blue House Yeomingwan. Provided by the Blue House
On the 14th, President Moon Jae-in instructed the financial authorities to carefully manage the supply of jeonse loans and remaining loans to the end-users of ordinary people at front-line bank branches without any setback. This is right after the Financial Services Commission announced that it would ensure that Jeonse loans to low-income end users would not be stopped.
President Moon made this statement at a staff meeting held at the Blue House, Blue House spokesman Park Kyung-mi said in a written briefing. An official from the Blue House said, “President Moon’s judgment is that it is necessary to manage household debt, but it is necessary to prevent damage to end users.”
Koh Seung-beom, chairman of the Financial Services Commission, met with reporters at a seminar held at the Yeouido Financial Investment Association in Seoul on the same day and said, “We will manage the leasehold loans and group loans so that they do not stop by the end of the year.” Chairman Ko said, “I plan to flexibly respond to the Jeonse loans in the fourth quarter (October to December) so that the Jeonse loans used by end users are not interrupted.”
The FSC has recently tightened lending regulations, considering that household debt has reached a dangerous level. As of the end of June this year, household debt stood at 1805.9 trillion won, up more than 10% from a year ago (1637.3 trillion won). However, as it was pointed out that the government’s high-strength loan restrictions could harm end-users such as loans for jeonse loans, President Moon seems to have ordered alternatives.
At the same time, President Moon said at a staff meeting on the same day, regarding the issue of minors being burdened with large inheritance debts after the death of their parents, “It is important to protect minors from the inheritance of debt, including administrative measures that allow minors to be sufficiently informed about the inheritance system. Seek institutional improvements for this.”
for stop reporter cdragon25@hankookilbo.com
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