Gen MZ financial relief programs stir up fairness debate

Gen MZ financial relief programs stir up fairness debate

President Yoon Suk-yeol looks at a book he received as a present during a meeting with civil servants in their 20s and 30s at Government Complex Sejong, May 26. Korea Times file

By Yi Whan-woo

The Financial Relief Program for People in Their 20s and 30s Who Are Struggling To Pay Off Their Loans Will Help Relief Among Seniors Who Are Struggling To Pay Off Loans But Are Excluded From Financial Services Because Of Their Age. It’s sparking debates about fairness and fairness.

The program is in line with President Yoon Suk-yeol’s move to help members of Generation MZ (the Korean word for millennials and Generation Z) who have borrowed money primarily for home purchases and investments. and implemented by private banks. With assets such as stocks and cryptocurrencies.

Many eligible borrowers are facing a snowball of debt, unable to capitalize on falling real estate, stock, and cryptocurrency prices as their repayments increase due to higher base rates. About 56.7% of
Generation MZ rely on bank loans to buy a home, compared to 36.4% for the older generation.

20- and 30-year-olds make up 55% of his cryptocurrency investors, according to data compiled by 10 major brokerage firms.

“But that doesn’t mean the financial hardships of the older generation are less severe than those of the MZ generation,” market analysts say. His 4,444 people in their 40s and her 50s were the most indebted of any age group, according to data from the Korea Institute of Finance (KIF). The average debt of those under 30 is 114 million won, while the average is 143 million won.

According to the Seoul Bankruptcy Court, bankruptcy applicants are generally older, with 6.8% of those aged 20-30 and 33% of those aged 50-44 who are over 60.

According to Financial Supervisory Service (FSS) data, people in their 40s and her 50s accounted for 54.3% of his total household debt in March, reaching 1,014 trillion won.

“Financial instability in the 40s and 50s should not be overlooked as it can pose risks to the national economy as a whole,” published FSS data. “Unfortunately, they are not on the eligibility list for the Fiscal Relief Program.”

The government-led program includes reducing interest rates on loans for people under the age of 34 who have suffered losses in stocks and cryptocurrencies. He includes a 30-50% discount.

In the personal sector, Woori Bank has closed within the past 5 years.If the customer is between the ages of 19 and 29 and the repayment amount does not exceed 300 million won and the credit rating is good, up to 5 Allow annual repayment.

Shinhan Bank said that over the next five years, he allocated 14 trillion won to help young customers and 11 trillion won to help them stabilize their lives.

“I understand that the younger generation is struggling with debt, but the older generation has similar problems.”

Credit/Source : KOREATIMES

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