The president’s office explained that the ‘special youth program’, which reduces the interest of young debtors, causes ‘moral hazard’ and that the principal is not forgiven.
The President’s Office today (19th) through the official SNS account said, “The recent rapid debt adjustment for young people announced by the Financial Services Commission is a system that extends loan maturity and lowers interest rates to prevent all bonds from becoming insolvent.” It is not supported under any circumstances.”
The presidential office explained, “Debt adjustment is a system that has been operated for all citizens in the past.
“The government confirms that this measure will strictly limit the target and content of support so that moral hazard does not occur,” he added.
Previously, the FSC announced the ‘Special Youth Program’, which included reducing interest by up to 50% depending on the degree of debt for young people with a credit score of less than 20%.
In response, some pointed out whether it is appropriate for the government to bail out young people who have invested in debt with taxes.
[사진 출처 : 연합뉴스 / 대통령실통신사진기자단]