Assemblyman Song Eon-seok Proposes Five-Year Extension of Inclusive Finance Contribution Obligation

Blocking Funding Gaps in Inclusive Finance
Permanent Contribution Obligation Deferred for Further Discussion

Song Eon-seok, a member of the National Assembly from the People Power Party representing Gimcheon, Gyeongbuk (3rd term), has sponsored a bill to extend by five years the obligation of financial institutions to contribute to the Korea Inclusive Finance Agency, which is set to expire in October.

On August 14, Assemblyman Song submitted a partial amendment to the Act on the Support for the Financial Life of Ordinary People, proposing to extend the contribution obligation of financial institutions from the current five years to ten years.

Song Eon-seok, member of the National Assembly of the People Power Party (Gimcheon, Gyeongbuk, 3rd term)

Under current law, financial institutions are required to contribute a certain percentage of their loans and other products to the Korea Inclusive Finance Agency; however, this obligation is scheduled to end on October 8.

The government and the ruling party are pursuing measures to make this obligation permanent and to institutionalize the inclusive finance stabilization fund.

Assemblyman Song agreed with the need for stability in financial support but emphasized that, as the system imposes a continuous burden on financial institutions and citizens, there must be adequate discussion and social consensus.

This amendment focuses on extending the obligation by only five years instead of immediately making it permanent. The aim is to prevent a gap in funding for policy-based inclusive finance, while securing time for discussion on future funding methods and the distribution of the financial burden.

Song Eon-seok stated, "Support for inclusive finance must continue in a stable manner, but the issue of imposing a permanent contribution obligation on financial institutions should be handled with caution," adding, "A sustainable and reasonable funding system must be established through sufficient social discussion."

This is being evaluated as a practical compromise in that it maintains the sustainability of inclusive finance, while requiring social consensus for imposing a permanent burden.

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