Will loan restrictions be relaxed next year? Today’s Party Meeting – Jeonnam Ilbo

Will loan restrictions be relaxed next year? Today’s party meeting

Focus on protection of end-users for ordinary people
Increase medium-interest loans from single financial institutions
Opposition presidential candidates all criticize household debt

The results are noteworthy as the Democratic Party and the government are scheduled to hold a meeting with the party on the 10th for next year’s total household loan management plan.

According to the financial and political circles, on this day, the party government is expected to hold discussions with a focus on protecting the end-users of ordinary people. However, there are concerns that the policy uncertainty will not increase as some believe that the ruling party will demand easing of some regulations, such as the total debt-to-income ratio (DSR) for each borrower, which will be implemented from January next year.

Park Wan-joo, chairman of the Democratic Party’s policy committee, held a press conference at the National Assembly on the 7th and said, “We will receive a report on how to provide relief to the end-users as much as possible.” We will discuss ways to do it,” he said.

The FSC announced on the 3rd that it would consider excluding loans for low- and mid-credit borrowers and low-income financial products from the total household debt limit for next year. This is because, as the government strengthens household debt management, there is a strong criticism that banks tied to the total amount limit temporarily or drastically reduce the handling of financial products for low-income earners such as mid- and low-credit loans and Bogeumjari loans, which is exacerbating the difficulties of end-users. .

The financial authorities are planning to increase the medium-interest rate loan for low-to-mid-credit borrowers from 30 trillion won last year to 32 trillion won this year and 35 trillion won next year. As the amount excluded from the total amount increases, the financial institutions’ loan capacity increases, so the party is expected to have a heated debate over how much to exclude from the total amount regulation.

In addition, it is expected that there will be voices demanding that some regulations be relaxed, including the DSR regulations for each borrower, which will be strengthened in earnest from next year. On the 6th, Song Young-gil, the leader of the Democratic Party, announced that it had delivered an opinion to the government that it was necessary to ease the second stage of the DSR, which is scheduled to be implemented in January next year.

In the midst of this, the ruling and opposition presidential candidates who are all-in on ‘voting’ ahead of next year’s presidential election are criticizing the government’s household debt policy every day, raising questions about whether the high-strength loan regulations for next year prepared by the financial authorities can be implemented as they are. have.

Previously, the financial authorities were of the opinion that the management of jeonse loan and group loans should also be strengthened, but there is a precedent for temporarily excluding them from the household debt management plan announced on October 26 due to pressure from the politicians and the Blue House.

People’s Strength Presidential Candidate Yoon Seok-yeol recently posted on his Facebook page, “If I become president, I will rationally adjust the unreasonable loan regulations.”

Candidate Yoon said, “It’s a big deal for the poor, middle- and low-credit people. If they can’t even use the second financial sector, where do they go?” he said. No. I can’t afford the murderous interest rate that is difficult to even imagine, and I may end up going bankrupt.”

Candidate Yoon said, “The reason for this situation is because the financial authorities’ unreasonable ‘reducing the total amount of loans’. The point is that we are blocking the source,” he claimed.

Lee Jae-myung, the presidential candidate of the Democratic Party of Korea, also criticized the government’s loan regulation on the 7th, saying, “It was a lack of consideration for the field because it started uniform financial control.”

Koh Seung-beom, chairman of the Financial Services Commission, who has been ‘hard-lined’, has recently taken a step back, emphasizing ‘flexible’ management.

At a press conference on the 3rd, Chairman Koh said, “The total amount management has been significantly strengthened in the second half of the year and will continue for the time being, but since systematic system management such as DSR is basically implemented, even if the total amount management target (4-5%) is set, it is much more flexible than this year. It can be managed,” he said.

He also had a meeting with the fintech industry and related financial companies the day before, and at a meeting with reporters, he said, “(At the party-government meeting) we will discuss the current household debt situation in general and the protection of end-users in general.” “Next year, the second stage of DSR regulation for each borrower will be implemented, making more systematic management possible.

Some are interpreting that these remarks by Chairman Koh are suggesting a shift to an easing stance ahead of the presidential election. However, in this case, it is expected to be criticized for lowering the credibility of the policy due to the uncertainty caused by frequent policy changes and causing confusion in lenders and the market.