At a media briefing, the South Korea Financial Services Commission reviewed ten achievements in the first year of the Lee Jae Myung administration's financial policy agenda. It grouped progress into three areas: redirecting finance away from real estate and toward capital markets, strategic industries and regional growth, expanding support for vulnerable borrowers and small businesses, and strengthening household debt and market risk management. The commission highlighted capital market measures including a one-strike-out principle for market manipulation, extending directors' fiduciary duty to all shareholders and requiring listed companies to permanently retire treasury shares. It said the KRW150 trillion National Growth Fund launched in December 2025 has selected 13 megaprojects and committed KRW8.4 trillion to 11 of them, including KRW4.6 trillion for regional economies and KRW1.2 trillion for direct investment in future high-tech industries. Changes to bank and insurer capital rules are expected to free up about KRW1.242 quadrillion for productive sectors, with KRW92 trillion already supplied so far in 2026. On consumer and livelihood measures, policy microloan rates were cut from 15.9 percent to single digits, a 4.5 percent lending program was introduced for young adults and borrowers with strong repayment records, and the New Leap Fund purchased KRW8.4 trillion of delinquent debt, stopping collection against about 660,000 people and writing off KRW1.8 trillion for about 200,000 socially vulnerable individuals. The briefing also pointed to tougher action against illegal lending and vishing, including invalidating illegal private loans above 60 percent annual interest and a 31.6 percent year-on-year drop in reported vishing losses. Next steps include a KRW10 trillion support program and an AI-based Small Business & Self-ownership Credit Bureau for small businesses, retail access from May 22 to KRW600 billion of National Growth Fund investments, and a youth future savings program scheduled for June 2026, while the FSC said it will continue refining the policy agenda and seek further measures to support livelihoods and the real economy.
South Korea Financial Services Commission2026-05-21
South Korea Financial Services Commission outlines ten first-year achievements including KRW150 trillion growth fund and New Leap Fund debt relief
The South Korea Financial Services Commission reviewed first-year progress under the Lee Jae Myung administration’s financial agenda, highlighting a shift from real estate toward capital markets and strategic industries, expanded support for vulnerable borrowers and small businesses, and stronger household debt and market risk management. Measures include stricter capital market rules, deployment of the KRW150 trillion National Growth Fund, capital rule changes to free KRW1.242 quadrillion for productive sectors, lower-cost policy microloans, delinquent debt purchases and write-offs, and tougher action against illegal lending and vishing. Next steps include a KRW10 trillion small business support program, an AI-based Small Business & Self-ownership Credit Bureau, expanded retail access to National Growth Fund investments, and a youth savings program.