Financial system that changes in the new year
Decimal trading of domestic stocks available
Partial reduction of principal for ‘delinquent student loans’
From next year, the regulation on the total debt-to-income ratio (DSR) for borrowers will be tightened, making it difficult to obtain household loans. Financial products for young people that can receive additional interest rates and income deductions will be launched, and decimal trading on domestic stocks will be possible.
The Financial Services Commission announced on the 30th the ‘Financial system that will change from the new year in 2022’ containing these contents. First of all, the management of household loans will become stricter in the new year. The borrower-level DSR regulation will apply to borrowers exceeding 200 million won from January next year, and from July next year to borrowers exceeding 100 million won. The amount of principal and interest that must be repaid annually from annual income cannot exceed 40% for bank loans and 50% for loans from secondary financial institutions. Long-term card loans (card loans), which were excluded from the DSR calculation, will be included from next year. However, credit loans received for the purpose of marriage, funeral, surgery, etc. are excluded.
Savings savings and funds that support youth asset formation are scheduled to be sold in the first quarter of next year and the first half of next year, respectively. Youth Hope Savings Savings Savings Savings Savings Savings Savings Savings Program for young people aged 19-34 with a total salary of 36 million won (comprehensive income 26 million won) or less can join. An additional interest rate of up to 4 percentage points is applied to the market interest rate, and there are also tax-free benefits. If a young person with a total salary of 50 million won or less (global income 38 million won) joins the youth-type income deduction long-term fund, 40% of the payment can be deducted for 3 to 5 years.
Minority stock trading for domestic stocks will be possible from the third quarter of next year. The My Data business (personal credit information management business), where you can check scattered financial assets at a glance, will be fully implemented from January 5 next year after the ongoing pilot service period ends.
Financial support for the vulnerable classes suffering from COVID-19, etc. will be partially expanded. Among borrowers who are undergoing debt adjustment by the Credit Recovery Committee (CRC), victims of COVID-19 have the grace period for repayment extended from 6 months to 1 year, and if they are recognized as disaster victims due to job loss or closure, the maximum reduction rate (70%) have. If you are delinquent on your student loan, you can receive debt adjustment by combining it with your general debt at the Reinstatement Committee from January 27 of next year. The principal of student loan loans can be reduced by up to 30%, and the target is expanded from ‘more than 6 months in arrears’ to ‘more than 3 months in arrears’.
The loan limit of the Worker’s Sunshine Loan and Sunshine Loan Bank, which targets low-income and low-credit vulnerable borrowers, will be raised by 5 million won in February next year. The credit card fee rate of about 2.2 million card merchants with annual sales of 300 million won or less will be lowered from 0.8% to 0.5% from January 31 next year.