It has become a national project by adding the government budget for resolving income polarization due to the rapid growth of the fund economy as a New Deal fund project.
At the 4th Strategic Meeting of President Moon Jae-in on the New Deal Economic System on the 14th, the existing 'safety net strengthening' New Deal project will be renamed 'Human New Deal' and additional funds will be injected from 160 trillion won to 60 trillion won.
The project to reduce inequality and disparity added to the New Deal Fund is a method of responding to the expansion of household loans by expanding youth loans by doubling the 26.6 trillion won in the safety net project to 50 trillion won.
For the New Deal project, the government budget was increased to 220 trillion won by adding 60 trillion won this time from last year’s plan to inject 160 trillion won (including national, local, private, etc.) into four regionally balanced New Deals, strengthening the safety net of the Digital New Deal. It was expanded from 45.9 trillion won to 160 trillion won, transforming it into a national project to hide the fiscal deficit.
With the government spending 160 trillion won, the Human New Deal 26.6 trillion won has the highest increase of 50 trillion won, and the 42.6 trillion won in the regionally balanced New Deal is expanded to 62 trillion won.
The increase in government spending increased from 44.8 trillion won to 49 trillion won in the Digital New Deal, a central project last year, and 42.7 trillion won to 61 trillion won in the Green New Deal.
The 'Youth Policy', a new project of the New Deal Fund, was applied in response to expanding household loans by expanding savings incentives.
The expansion of monthly rent loan with guarantee for youth expands the base income from 20 million won to 50 million won to maximize the demand for jeonse and implement a monthly rent-free loan for young people.
The 'Youth Savings Account' is a state-funded account in which the government pays 3.6 million to 1,080,000 won, one to three times the national budget, after saving 3.6 million won for 3 years by 100,000 won a month on annual income of 22 million won or less.
The Bank of Korea's household loan count increased by 41.6 trillion won in the first half of the year (January to June), the highest in history, it was announced on the 14th that most of it was due to the increase in demand for funds for housing sales and rental transactions and living expenses.
Household loans increased by 10.1 trillion won in the entire financial sector last month (June), home mortgage loans increased by 6.3 trillion won, and credit loans (other loans) increased by 3.7 trillion won.
As for corporate loans, small and medium-sized enterprises (including individual business owners) increased by 6.1 trillion won in June, but large companies decreased by 1.1 trillion won, indicating a boom in the capital of large corporations.
According to the Financial Supervisory Service statistics, the delinquency rate for loans to large corporations (0.38%) in May fell by 0.01%p from the previous month, the delinquency rate for loans to SMEs (0.42%) rose by 0.02%p, and the delinquency rate for loans to households (0.20%) rose by 0.01%p from the previous month. Households and private businesses of small and medium-sized corporations have shown pressure on delinquency rates.
In the fund economy that led the early recovery of the corona virus, the net assets of public offering funds increased by 38.4 trillion won (14.0%) to 313.1 trillion won in the first half of this year compared to last year, while private equity funds increased by 34.8 trillion won (7.9%) to 477.5 trillion won.
The fund economy was led by private equity funds in the early stages of the Moon Jae-in administration, showing a rapid annual growth rate of over 10% for three years from 2017 to 2019, and net assets increased by 6.3% last year.
The Financial Investment Association's 'fund market in the first half of 2021' showed an inflow of 45.7 trillion won to funds and an increase of 9.4 trillion won (10.3%) to equity funds for a total of 100.1 trillion won and bond funds 132.8 trillion won to 14 trillion won. An increase of 900 billion won (12.6% growth rate) and 23.3 trillion won of bond-type funds showed a super boom with an increase of 7.1 trillion won (44.0%).