Starting next year, to shift capital flows into productive areas, the Public Growth Fund will be launched and the lower bound of risk weights for banks' mortgage loan exposures will be raised. The Financial Services Commission on the 30th announced "financial systems changing from the new year 2026" with these measures.
First, to promote productive finance, the Public Growth Fund will begin providing 30 trillion won per year across the entire ecosystem related to advanced strategic industries. To ease the excessive concentration of funds into the real estate market, the lower bound of risk weights on banks' mortgage loans will be adjusted to 20% from the current 15%.
Also, to strengthen the management of large mortgage loans, the Korea Credit Guarantee Fund contribution fee rate, which is currently differentiated by loan type, will be revamped to vary by loan amount. Through the regional credit supply expansion target system, the share of policy finance for areas outside the capital region will be increased to 41.7% in April from 40% this year.
The fairness and transparency of the capital market will also be enhanced. From next year, if a listed company holds treasury shares equal to at least 1% of the total number of shares issued, it must disclose the status of treasury share holdings and its disposal plans at least twice a year. For serious industrial accidents, disclosure of the occurrence, including the damage situation, response measures, and outlook, will be made mandatory.
The threshold that required only KOSPI-listed companies with asset of at least 10 trillion won to file English disclosures will be expanded in May to KOSPI-listed companies with asset of at least 2 trillion won. Under K-IFRS, the presentation of corporations' income statements will change from "operating/non-operating income and expenses" to "operating/investing/financing income and expenses."
Measures to ease the financial burden on low- and middle-income households were also announced. For mutual finance institutions, as with banks and other financial firms, a reform of early repayment fees will be implemented so that only actual costs incurred in executing loans are reflected. Four existing policy-backed financial products for low- and middle-income borrowers will be integrated into two programs—Sunshine Loan General and Special Guarantees—and the range of providers will be expanded to all financial sectors.
In addition, with the overhaul of the anti-illegal private lending prevention loan, the effective interest rate will be eased from 15.9% to the 5–6% range, and the repayment method will be changed from a one-time lump-sum repayment at maturity (1 year) to an equal principal-and-interest amortization plan (2 years). This will proceed by lowering the nominal rate to 12.5% while refunding half of the interest paid upon full repayment, bringing the effective rate down to 6.3%, with greater rate cuts for socially vulnerable groups.
All life insurers will launch a "death benefit securitization product" that allows part of the death benefit of whole life policies to be securitized and used for retirement funds. Within the first quarter of next year, the current monthly sharing cycle for deceased persons' lists will be shortened to once a day to prevent incidents and disputes arising from identity theft of the deceased and to minimize harm to financial consumers.
To help address the low birthrate, starting in April, when the policyholder or spouse takes maternity or childcare leave, the following will be implemented to reduce premium burdens: ▲children's insurance premium discounts ▲premium payment deferrals ▲deferrals of interest payments on policy loans.
In June, the Youth Future Installment Savings, a tax-exempt savings product that provides a government contribution matching the amount saved by young people, will be launched. It targets individuals with annual earned income of 60 million won or less (based on wage income) or small business owners with annual revenue of 300 million won or less whose household median income is at or below 200%, and is structured to allow receipt of a lump sum of at least 20 million won at maturity.