[정치][현장영상] The party government discusses measures to reduce the maximum interest rate in court … “Protection of low creditors”



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[앵커]

Also, the Democratic Party and the government are meeting and discussing how much to cut the maximum legal interest rate, which is currently 24%.

This is to ease the burden of excessive interest on low-credit people driven by loan companies and dead bodies.

Let’s go to the National Assembly where the political-partisan consultations are held.

[김태년 / 더불어민주당 원내대표]

The Bank of Korea’s standard interest rate is 0.5%. The era of low interest rates continues.

However, common people and the vulnerable, who have been battling with the crown, still suffer from high interest rates.

In June this year, the size of credit loans with interest rates above 20% was found to exceed KRW 15 trillion.

Most of the people who receive high-interest loans from lenders are vulnerable groups with low credit scores.

The damage caused by illegal private financing continues. In the first half of this year, there were a whopping 63,900 cases of illegal loan damage reports.

Recently, illegal high-interest, short-term online loans for teens are said to be popular too.

Our Democratic Party and the government will do more to strengthen the financial safety net for ordinary people and the vulnerable.

First of all, it is necessary to reduce the interest burden of ordinary people by lowering the maximum legal interest rate. In 2016, the Democratic Party lowered the legal maximum interest rate to 27.9% with the Party’s key promotion bill.

The Moon Jae-in administration chose to gradually reduce the maximum interest rate to 20% per annum as a national task and, in 2018, reduced it to 24%.

Even in the XXI National Assembly, several members of our party have proposed a bill to lower the maximum legal interest rate.

It is anachronistic to set the highest interest rate at 24% even in the current low interest rate situation.

Today, the political party council is drawing up a reasonable reduction plan. We will also take steps to prevent side effects that can be achieved by lowering the maximum interest rate.

This is because there is a possibility that the opportunity to use funds for people with little credit will be reduced as finance companies reduce their loans and, consequently, illegal private financing expands.

There is a need to differentiate between low-credit people who have the ability to repay and those who do not have the ability to repay policies, and several complementary government measures are required to support economic self-sufficiency and rehabilitation, such as financial support and adjustment Of the debt.

At today’s meeting, the party and the government will come up with a plan to reduce the interest burden of ordinary people but not reduce the supply of loans for ordinary people. Thank you.

[한정애 / 더불어민주당 정책위 의장]

Nice to meet you. This is Han Jeong-ae, Chairman of the Policy Committee. I would like to thank House Representative Tae-nyeon Kim, Ho-jung Yoon, Vice President Kim Young-jin, Deputy Executive Director Hae-Ryun Paik, Assistant Legislators, and Finance Committee Chair Eun Seong-soo and Deputy Justice Minister Koki-young for attending the higher interest rate cut conference in court today.

Low interest rates continue in many countries, both at home and abroad, and as our economy matures after a period of rapid growth, the rate of economic growth and nominal income growth are gradually declining.

In this economic situation, it will be difficult for anyone to maintain economic life by paying high interest rates above 20%.

However, many ordinary people still have high interest rates. In particular, as of June there were more than 3 million loans with an interest rate above 20% in all financial sectors, with an amount exceeding 15 trillion won.

From this point of view, the Moon Jae-in administration has selected and is pursuing a national task to ease the interest burden by lowering the maximum interest rate in July 2017.

However, on the other hand, it is also true that if the maximum interest rate is cut, financial companies will see their credit rating more difficult in the future and, as a result, the number of people who can no longer use loans will increase.

In particular, if the market insolvency rate increases after Corona 19 and the risk-taking capacity of financial companies decreases accordingly, these spillovers may become a reality.

Today’s party and government meeting is to discuss ways to lower the maximum interest rate that can maximize the benefits of reducing the interest burden of ordinary people and minimize the side effects of abandoning loans.

We hope that the Party government can gather wisdom and draw good conclusions. Thank you.

[윤호중 / 법제사법위원회]

I would like to express my appreciation to House Representative Kim Tae-nyeon, Policy Committee Chairman Han Jeong-ae, Judicial Chairman Yoon Ho-jung and Gwan-Seok Yoon, Senior Vice Chairman Kim Young-jin, and Prosecutors Committee Hae-Ryun Paik and Policy Committee Chairman Han Byeong-do, and everyone for providing important positions.

I am pleased to present the government’s plan for the reduction of the maximum legal interest rate today.

The statutory maximum interest rate has been abolished since the IMF and has been continuously lowered since 2002, when high interest rate obligations were recklessly increased and increased to reduce the suffering of ordinary people with little credit.

However, if you look at the process, it was a long and difficult process, where there was always a lot of debate and pain.

This is because cutting the higher interest rate has the disadvantage of eliminating loan opportunities for low creditors.

However, as the Speaker of the House, the Chairman of the Policy Committee and the two presidents previously said, it is determined that now is the time to cut the maximum interest rate.

Since February 2018, when the highest interest rate was last reduced, the standard interest rate and the average interest rate on loans to households have been reduced by 1.25 percentage points and 1.5 percentage points , respectively.

In particular, in the case of the loan business, which is frequently used by low-income and low-credit people, the legal maximum interest rate is collectively applied regardless of the actual repayment capacity, so it is a reality that the burden on these people cannot be reduced without a reduction in the maximum rate.

From the haircutting experience thus far, there are enough factors that most borrowers with repayment capacity should retain and absorb as clients as much as possible of the position of financial firms to operate.

In fact, it is estimated that many of the borrowers who have applied above the previous maximum interest rate since the February cut saw the effect of reducing the interest burden.

In addition, it would be correct to support self-reliance through other methods, such as low-income policy financing, debt adjustment, and welfare, rather than offering high-interest loans unconditionally to those who lack capacity. of payment.

The plan that the government will explain today is a comprehensive review of the level, method, timing and complementary measures to maximize the good side of the maximum rate cut and minimize the bad side as mentioned by the aforementioned people.

The uncertainty caused by Corona 19 still persists and there were limitations in the future impact simulation process, but if you provide us with a lot of feedback through today’s discussion, we will constantly prepare for the successful implementation of this plan. Thank you.

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