The Ministry of Employment and Labor, together with the Korea Workers’ Compensation and Welfare Service, has expanded the Living Stabilization Fund interest subsidy loan program to reduce workers’ financial burdens. This initiative is designed to help workers manage increased expenses during key life events such as the new school term and marriage. By subsidizing up to 3 percentage points of loan interest, the program aims to make essential loans more affordable. The policy reflects the government’s commitment to supporting vulnerable workers and easing household financial stress.
The expanded program now covers a wider range of workers, including those with children under 18, newlyweds within three years of marriage registration, and those supporting elderly parents or facing funeral costs. Loan limits have been raised to a maximum of 20 million KRW for child-rearing, marriage, and elderly parent support, and up to 10 million KRW for funeral expenses. Eligible applicants include employees, special-type workers, and self-employed individuals with at least three months of work or industrial accident insurance. The program targets those with a median income of 5,359,036 KRW or less.
Significant changes include extending the application period for marriage loans from one year to three years after marriage registration and expanding child-rearing support to families with children up to 18 years old. Funeral expense support can now be applied for within one year of the date of death. The repayment method allows for a one-year grace period followed by three or four years of equal principal payments. These changes have been in effect since December of the previous year, with the aim of providing timely support during periods of increased financial need.
Frequently asked questions include eligibility and application procedures. Workers must be employed or insured for at least three months and meet income criteria to qualify. Applications can be submitted through the Korea Workers’ Compensation and Welfare Service website or by contacting their customer center. The program covers various life events, including child-rearing, marriage, elderly parent support, and funerals. For more information, applicants are encouraged to visit the official website or call the designated hotline.
The expansion of Korea’s Living Stabilization Fund interest subsidy program demonstrates a targeted approach to easing workers’ financial burdens during significant life events. By increasing loan limits, broadening eligibility, and adding new support categories, the government is addressing real needs among vulnerable groups. The inclusion of elderly parent support and funeral expenses reflects a comprehensive understanding of household financial pressures. This policy is likely to have a meaningful impact on workers’ economic stability, especially during periods of high inflation and rising interest rates.