The government has drawn up next year's budget for the Financial Services Commission at 924.17 billion won, nearly double this year's 459.01 billion won. The Financial Services Commission (FSC) said it plans to focus resources on expanding investment in high-tech industries, supporting finance for low-income people, and helping young people build asset.
On the 1st, the Financial Services Commission announced the 2027 fiscal year budget plan with these details. The plan includes 3.5 trillion won for Future Response Fund programs such as the Public Growth Fund and the Youth Future Savings, and 42.2 billion won for the Public Interest Whistleblower Encouragement Fund to pay rewards for reporting unfair trading and accounting fraud. The government's budget bill will be submitted to the National Assembly in early Sep. for review and finalized in early Dec.
The Financial Services Commission (FSC) allocated 1.055 trillion won to boost growth potential. It will inject 1 trillion won in fiscal resources into the Public Growth Fund, which invests in advanced strategic industries such as artificial intelligence (AI) and semiconductors. The plan is for fiscal funds to serve as seed money to attract private capital and create a fund of more than 200 trillion won over five years. It allocated 50 billion won anew for AI proof-of-concept by young Fintech corporations and for training professionals, and 50 billion won for the regional revitalization investment fund.
The budget to stabilize the livelihoods of low-income people is 1.0828 trillion won. The government will inject 527.4 billion won in fiscal funds into the special guarantee for Sunshine Loan and Sunshine Loan Youth to supply a total of 2.78 trillion won in loans. It will also launch the "K-Livelihood Guard Loan (tentative name)" for mid- to low-credit borrowers in the bottom 50% of credit scores. Using government and private resources, 600 billion won will be supplied, lending an initial 1 million won at an annual 4.5% with a maturity of 10 years. It set aside 500 billion won to adjust debt on long-term arrears claims of small business owners hit by COVID-19.
A total of 2.0855 trillion won was allocated to help young people build asset. The centerpiece is the Youth Future Savings, with 1.7 trillion won budgeted. It adds a government contribution to a monthly deposit of up to 500,000 won and offers a tax exemption on interest income. The income eligibility requirement for individuals and households in the general type will be removed, and the preferential contribution rate will be raised to 15% from the current 12%. A new preferential track will be created to support 25% of deposits for young people working at small and midsize corporations in the provinces.
A new 146.5 billion won was reflected for the "Our Child Independence Fund," in which parents and the government contribute together to a fund in a child's name. It also set aside 88.3 billion won for the Youth Future Bogeumjari Loan, which helps people 39 and under buy non-apartment dwellings, and for combined jeonse-monthly rent guarantees. In addition, 500 billion won was allocated to a fund supporting normalization of real estate project financing (PF) business sites, and 42.2 billion won for rewards for reporting stock price manipulation and accounting fraud, respectively.