27 public companies including KEPCO are running ‘low interest rate concessional loans’ in violation of government guidelines
A loan with an interest rate of around 2%… 9 places that followed the ‘Apply LTV and charge interest rates’ guidelines
An improvement plan included in the innovation plan
It found that 27 public corporations, including Korea Electric Power Corporation (KEPCO), still maintain a ‘preferential loan’ system for employees that does not apply the mortgage loan ratio (LTV) to low interest rates.
Although commercial bank loan interest rates have skyrocketed to the 7 percent range, public corporations are still lending 100 to 200 million won at an interest rate of about 2 percent to workers who are buying houses.
Last year, the government prepared innovative guidelines to apply LTV regulations to internal loans of public institutions and to adjust interest rates and limits, but three out of four public companies breach these guidelines.
◇ Although it’s been a year since the government’s guidelines, 27 out of 36 public companies are holding ‘concessional loans’
The 36 public enterprise innovation plans analyzed by Yonhap News on the 10th included the current status of internal loans for housing funds and living stabilization funds and improvement plans for each institution.
Among the 36 public corporations, the institutions that comply with the government’s internal innovation guidelines related to loans are Korea Coal Corporation, Incheon International Airport Corporation, Korea Gas Corporation, Korea Railroad Corporation (KORAIL), Korea Gas Technology Corporation, and Korea. Broadcast Advertising Promotion Corporation (KOBACO) ), Incheon Port Authority, Ulsan Port Authority, and SR.
Of the 36 public enterprises, 27, or 75%, do not follow government guidelines and maintain the ‘preferential lending’ system.
In September last year, the Ministry of Strategy and Finance notified all organizations of the innovation guidelines relating to internal loans.
The aim of the guidelines was to improve the internal lending system operated by public organizations through budgets or the internal labor welfare fund.
Loans for the purchase of a home were made only for homeless people to buy a house of 85 square meters or less, and the limit was set at a maximum of 70 million won.
In addition, LTV regulations that have not been applied before must be applied.
When an employee applies for an internal loan, the organization checks the amount of money the employee borrows from the bank to buy a house, and then provides a loan within the limit according to the LTV standard.
A maximum of 20 million won was set for the life stabilization fund loan.
The interest rate of the internal loan was not lower than the average lending rate of commercial banks.
◇ Improvement plans are included in the innovation plan, but it is not known if they will be realised
According to the innovation plan presented at the end of August, KEPCO operates a housing loan system for employees with a limit of 100 million earned at an interest rate of 3% and 80 million earned at an interest rate of 2.5% on for rent.
LTV is not applicable.
When buying a house, the Korea District Heating Corporation lends up to 200 million won at an interest rate of 1.67%, and the Housing and Urban Guarantee Corporation lends up to 200 million won at an interest rate of 1.5%.
Not all LTVs apply.
Korea Land and Housing Corporation (LH) provides a housing loan of up to 90 million won at an interest rate of 2.9%.
Korea Expressway Corporation operates a home purchase loan system with a limit of 75 million won at an interest rate of 1.95% without LTV.
In a situation where the interest rate on home mortgage loans in commercial banks has reached the 7% range, some public company employees are getting ‘exceptional’ benefits.
In addition, Korea National Oil Corporation, Korea Hydro & Nuclear Power (KHNP), Korea Water Resources Corporation, Korea Airports Corporation, Korea Real Estate Agency, Jeju Free International City Development Center (JDC), Korea Horse Society, Grand Korea Leisure ( GKL). ), Korea Minting Corporation, Korea Namdong Power Generation, Korea Southern Power, Korea East-West Power, Korea Western Power, Korea Midland Power, Korea Mine Reclamation Corporation, Kangwon Land, Korea Electric Power Technology Co, Ltd, KEPCO KPS, KEPCO KDN , Busan Port Authority, Yeosu Gwangyang Port Authority, Ocean Environment Corporation It operates a loan system that does not apply LTV or offer interest rates below market rates.
Most public corporations have included plans to improve internal loans, such as housing funds and living stability funds, in accordance with the guidelines in the innovation plan.
It is a method of applying LTV and lowering the limit while adjusting the interest rate to the bank’s home loan rate.
However, it was found that some organizations such as Korea National Oil Corporation, Korea Mining and Recycling Corporation, and JDC presented poor innovation plans, such as presenting improvement plans only for one of the housing funds and living stability funds.
Even organizations that correctly submitted an improvement plan are not sure whether they will be implemented or not.
This is because changes to the internal lending system are a matter that must go through labor management consultation.
/happy news
