The “Family People’s Financial Support Act”, which attracted attention with the so-called “financial profit-sharing system,” passed the first threshold of the National Assembly. According to the amendment, financial institutions such as banks must pay more than 200 billion won annually to finance financial products such as’Sunshine Loan’.
The general meeting of the Political Affairs Committee is being held at the National Assembly in Yeouido, Seoul on the 17th, presided over by Chairman Yoon Kwan-seok. Reporter Oh Jong-taek
The National Assembly’s Political Affairs Committee held a bill review subcommittee on the 17th and decided on an amendment to the Commonwealth Finance Support Act with the agreement of the opposition parties.
The amendment included the contents of expanding the credit guarantee account operated by the Public Finance Agency to the Complementary Account for the Public Finance Market and expanding related financial resources. The fund contributors were expanded from mutual financial institutions and savings banks to banks that handle household loans, insurance companies, and credit-specialized financial companies, and the contents of contributions to the fund were included.
The contribution to the fund is about 0.03% of the household loan balance. If the bill exceeds the threshold of the National Assembly’s plenary session, it is required to pay more than 200 billion won annually, including 10 billion won in bank notes (hereinafter as of the end of 2019), 18.9 billion won in specialized credit finance business, 16.8 billion won in insurance business, 35.8 billion won in agriculture and forestry associations, and 35.8 billion won in credit unions and Saemaul Geumgo. .
There was also a backlash that the Commonwealth Financial Assistance Act made it mandatory to pay contributions to private financial companies, which in fact was a quasi-tax. Previously, the amount of contribution was determined according to the amount handled by Sunshine Loan. From the perspective of financial companies, complaints were raised that they would bear additional burdens in addition to extending the loan maturity and delaying interest repayment due to Corona 19. Accordingly, the opposition parties decided to introduce a sunset system that applies the law temporarily for five years.
If the amendment to the Common People’s Financial Assistance Act is resolved at the Political Affairs Committee’s plenary meeting scheduled on the 24th of this month, it will be processed at the plenary session after reviewing by the Legal Affairs and Judicial Council.
Reporter Ahn Hyo-seong [email protected]
