[2026 Parliamentary Audit] Lee Eogweon: "Strengthen Support for Vulnerable Groups Ahead of Rate Hikes; Strictly Manage Household Debt"

Lower rates and expand supply of policy-backed financing for low-income households
Strengthen support for long-term delinquent borrowers seeking a fresh start
Expand the National Growth Fund to 200 trillion won
Step up efforts to combat unfair trading and illegal private lending

Financial Services Commission Chairman Lee Eog-weon said the government would expand financial support for ordinary and vulnerable households in preparation for a period of rising interest rates, while strictly managing household debt.

Financial Services Commission Chairman Lee Eokwon speaks at the first Emergency Economic Headquarters meeting and Economic Ministers' Meeting, held at the Government Complex Seoul in Jongno-gu, Seoul, on Oct. 1, 2026. Photo by Cho Yongjun.

At the National Assembly Political Affairs Committee's parliamentary audit of the Financial Services Commission on Oct. 8, Lee said, "We face difficult external conditions amid overlapping uncertainties, including a shift toward tighter global monetary policy and the prolonged war in the Middle East." He added, "It is important to foster future growth drivers while supporting ordinary and vulnerable households and managing risks such as household debt."

The government will continue its policy of "inclusive finance" to improve vulnerable groups' access to financial services. Lee said, "We will lower interest rates on policy-backed financing for low-income households so that ordinary and vulnerable people can feel the difference from having fewer barriers to financial services, and will continue expanding its supply, including by launching new products."

The government will also strengthen debt restructuring and support for a fresh start for long-term delinquent borrowers. "Through the New Leap Fund and other programs, we will restructure or write off existing debts that borrowers have difficulty repaying, and comprehensively overhaul debt collection practices and the system for managing delinquent receivables to prevent a buildup of long-term delinquent debt," he said. "We will also support people through to economic self-reliance, including by working with the public and private sectors to extend integrated financial, employment and welfare support deep into local communities."

The government will also pursue tailored support for young people and small business owners. Lee said, "We will expand support for asset building, including through the Youth Future Savings Account, and continue launching a range of tailored financial products that supplement insufficient income and limited financial transaction histories." Regarding small business owners, he said, "We are introducing specialized credit assessment models and providing tailored support products," adding, "We will strengthen step-by-step support for long-term delinquent small business owners, from debt restructuring through to a fresh start."

Household debt management will continue to be strengthened. "We will maintain strict household debt management, including by curbing speculative demand for loans, while working to ensure an adequate supply of financing for ordinary households and mid-rate loans," he said. The government also plans to provide targeted financial support for genuine homebuyers and financial assistance to promote housing supply.

The government plans to expand "productive finance" to secure future growth drivers. To boost competitiveness in advanced technology and industrial sectors, it will increase the National Growth Fund from 150 trillion won to 200 trillion won and expand the range of eligible recipients and the scale of direct investment. It will also increase the share of policy financing allocated to regions and actively provide preferential financing to regional strategic industries, including those linked to the three major mega-projects and the strategy for five mega-regions and three special self-governing provinces, as well as to companies relocating outside the capital region.

To strengthen confidence in financial markets, the government will step up its response to unfair trading. It plans to improve its ability to combat unfair trading in the capital market by operating a joint response team and improving the whistleblower reward system, while strengthening investigative powers and measures to recover illicit gains. It will also enhance its ability to detect suspected voice phishing transactions and continue strengthening victim relief, including by blocking tools used in illegal private lending crimes, stopping illegal debt collection, and providing legal and recovery support to victims.

Lee also said, "We are preparing measures to improve corporate governance to enhance financial companies' competitiveness and ensure fairness in their governance." He added, "We are also working to ease network separation regulations, subject to security safeguards, to foster innovation and strengthen security capabilities in the financial sector."

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