[2027 Budget] Financial Services Commission Doubles Budget to 9.2 Trillion Won... 1.1 Trillion for Inclusive Finance, 2.1 Trillion for Youth Support

Up 98.7% from Last Year... 1 Trillion Won Allocated to National Growth Fund
New 'K-Min Saeng Jikim Loan' Introduced,
1.7 Trillion Won Earmarked for Youth Future Savings

The government will allocate a budget of 9.2 trillion won next year—almost double this year’s amount—to support investments in advanced industries through the National Growth Fund, inclusive finance for low-income groups, and asset-building support for young people.

On September 1, the Ministry of Planning and Budget announced the 2027 fiscal year budget proposal for the Financial Services Commission at the Cabinet meeting. The budget under the Financial Services Commission amounts to 9.2417 trillion won, an increase of 4.5901 trillion won (98.7%) compared to this year.

The Financial Services Commission will first invest 1.055 trillion won to enhance future growth potential. Of this, 1 trillion won is earmarked for the National Growth Fund, which will focus on strategic advanced industries such as artificial intelligence (AI) and semiconductors. The National Growth Fund is scheduled to be created and managed with a scale of over 200 trillion won over five years until 2030. Government finances will play a priming role by bearing risks in projects that are difficult for the private sector to invest in, thereby encouraging private capital participation. Additionally, 50 billion won will be allocated to the Regional Revitalization Investment Fund to boost local economies, and 5 billion won to support youth financial innovation, startups, and job expansion programs.

For stabilizing livelihoods of low-income groups, a total of 1.0828 trillion won is allocated. For vulnerable groups who have difficulty accessing essential funds like living expenses from institutional financial services at reasonable interest rates, policy financial products such as the Sunshine Loan Special Guarantee and Sunshine Loan Youth will be provided with 527.4 billion won in government funding, supplying loans totaling 2.78 trillion won. The supply scale for the Sunshine Loan Special Guarantee is 2.48 trillion won, and 300 billion won for Sunshine Loan Youth.

For people excluded from institutional finance, a new product, tentatively named ‘K-Livable Loan’ (K-Min Saeng Jikim Loan), will also be introduced. The government will inject 300 billion won, adding private sector funds for a total of 600 billion won in new loans. The loan will initially offer 1 million won at an annual interest rate of 4.5%, with a 10-year maturity, targeting people in the bottom 50% of the credit score distribution, regardless of income. An additional 500 billion won will be allocated for special debt adjustment of long-term delinquent bonds to help small business owners affected by COVID-19 recover.

To support asset-building for young people, 2.0855 trillion won will be invested. Of this, 1.7 trillion won is earmarked for the Youth Future Savings program. If young people aged 19-34 deposit up to 500,000 won per month, the government will provide matched contributions and exempt them from interest income tax. To enable universal enrollment, the general type will have all income requirements—both individual and household—removed. For the preferential type, the government’s contribution will increase from the current maximum of 60,000 won per month to 75,000 won. A new special track will be established to support young people working for small and medium-sized companies in regional areas by matching 25% of their own saving contributions.

The ‘Our Child Independence Fund,’ designed to support asset-building from birth, has been newly allocated 146.5 billion won. In this program, savings and investments are made jointly by parents and the government under the child’s name from birth until age 18, helping prepare initial assets needed for adulthood. The government will fund up to 1.2 million won per year.

For housing stability among young people, 88.3 billion won will be newly allocated to the Youth Housing Ladder Support Program. The government will launch the Youth Future Housing Loan and Youth Jeonse/Wolse Combined Guarantee products to reduce the housing costs of prospective young homebuyers and renters, from home purchases to monthly rent.

In addition, 500 billion won will be newly allocated to the Project Financing (PF) Site Normalization Support Fund, which provides liquidity to housing construction sites at risk of suspension, helping projects return to normal. For reporting rewards on unfair trading and accounting fraud, a total of 42.2 billion won is allocated to heighten detection of unfair trading practices and accounting irregularities.

The Financial Services Commission’s budget proposal for next year will be submitted to the National Assembly in early September, reviewed, and finalized by early December.

This content was produced with the assistance of AI translation services.