1. Reason for Revision

The proposed revision aims to temporarily increase the donation rates of financial companies to KINFA (Korea Inclusive Finance Agency) in order to respond to the difficult economic situation, including high interests and high prices, and to supply the general public with policy finance.

The revision also aims to vitalize policy finance for the general public by reducing the donations of financial companies that actively handle policy finance for the general public for KINFA.

2. Main Contents

A. Temporary increase of the donation rates of financial companies for KINFA (Article 42 (3) of the draft)

The revision raises the donation rates of financial companies as provided under Subparagraph 2 of Article 47 from “3/10,000 of the yearly rate” to “35/100,000 of the yearly rate” in the case of financial companies falling under Subparagraph 1 of Article 47 and to “45/100,000 of the yearly rate” in the case of financial companies falling under Subparagraphs 2 to 5 of Article 47 (Applicable until December 31, 2025).

B. Partial reduction of different donations of financial companies for KINFA (Article 47 (4) and attached Table 1-2 of the draft)

The revision partially reduces the donations of financial companies for KINFA under Article 47 (3) and stipulates that the standards for eligible financial companies and reduced amounts, etc. shall be determined by the Operation Committee under Article 8 of the Act (Applicable until December 31, 2025).