Politics · South Korea · 1 hr ago
Gyeonggi Province to End Two Low-Cost Loan Programs This Year
Gyeonggi Province plans to end its Rechallenge Loan program at the end of this year, after deciding to end its Ultra-Low Credit Loan 2.0 program as well.
The Rechallenge Loan, launched in 2017, offers loans of up to 15 million won to residents who are making agreed debt repayments or completed them within the past three years.
The loans carry annual interest rates of 2% to 3.5%, and borrowers repay them in equal instalments over five years.
By September, the program had provided 61,395 loans worth a total of 161.5 billion won.
The province says worsening finances and expanded national support programs prompted the decision, and plans to return 35.3 billion won in funding gradually from 2027 to 2031 for use in other programs.
The provincial council has asked for replacement plans and safeguards for borrowers before the programs end.
Gyeonggi Province plans to end two low-cost loan programs at the end of this year.
The programs are the Restart Loan for people repaying adjusted debts and the Ultra-Low Credit Loan 2.0 for residents with very low credit scores.
The province said worsening finances and expanded central-government financial support for lower-income households led to the decision.
A provincial council committee asked the administration to explain the closures, alternatives and protections for current users.
- Who
- Gyeonggi Province plans to end the programs. The provincial council’s Health and Welfare Committee requested further information and user protections.
- What
- The province will end the Restart Loan and Ultra-Low Credit Loan 2.0 at the end of the year.
- When
- The decision was announced on November 3, 2026. Both programs are planned to end at the end of 2026.
- Where
- Gyeonggi Province, South Korea.
- Why
- The province cited worsening financial conditions and the expansion of other central-government policy loans for lower-income households.
Gyeonggi Province
Gyeonggi Provincial Council Health and Welfare Committee
Reason for ending the programs
Gyeonggi Province
The province said its financial conditions are poor and central-government support for policy loans has expanded.
Gyeonggi Provincial Council Health and Welfare Committee
The committee said it was inappropriate to end programs for residents in the most difficult circumstances because of worsening finances.
Next steps
Gyeonggi Province
The province plans to end the programs and use returned contributions for other projects.
Gyeonggi Provincial Council Health and Welfare Committee
The committee asked the administration to report on the reasons, alternatives and measures to protect users.
Gyeonggi Province introduced the Restart Loan.
Applications for the Ultra-Low Credit Loan 2.0 filled within 20 to 30 minutes on both occasions.
The Restart Loan had supported 61,395 cases, totaling 161.5 billion won.
Gyeonggi Province announced plans to end both programs at the end of the year.
- Restart Loan maximum
- 15 million won at an annual interest rate of 2.0% to 3.5%
- Restart Loan repayment term
- Equal monthly principal-and-interest payments over five years
- Restart Loan support through September
- 61,395 cases; 161.5 billion won
- Ultra-Low Credit Loan 2.0 interest rate and amount
- Annual 1%; loans of 500,000 to 2 million won
- Restart Loan contributions to be returned
- 35.3 billion won, from 2027 through 2031
1 source
What people are saying
Because financial conditions are poor and the central government is expanding other policy loans for lower-income households, we decided to end the Restart Loan.
It is not appropriate to first end programs for residents in the most difficult circumstances, citing worsening financial conditions.