근로자 생활안정자금 종류If you need a lump sum but do not have the courage to knock on the bank’s door due to the high loan interest rate of over 5%, try taking advantage of the ‘Worker’s Life Stabilization Fund Loan’ operated by the government through the Korea Workers’ Compensation and Welfare Service.
The Worker Life Stabilization Loan is a project that provides low-interest loans to workers who are having trouble making a living to help them stabilize their lives and regain their motivation to work.
Although the limit varies depending on the purpose of receiving the loan, you can receive support for 8 types of essential funds at an ultra-low interest rate of 1.5% per year, up to a limit of 20 million won per person.
First, those eligible for support range from self-employed individuals to special workers, non-regular workers, and regular workers.
However, the requirements are slightly different for each target. In the case of a single self-employed person, he or she must have subscribed to ‘Small and Medium Business Owner Industrial Accident Insurance’ for at least 3 months as of the date of application, and the average monthly income of the previous year must be 2.96 million won or less.
Special types of workers include insurance recruiters, golf course caddies, and delivery workers. They must have been working at their workplace for more than 3 months as of the date of application, and the income requirements are the same as those for a single self-employed person (average monthly income of 2.96 million won or less in the previous year). Regular workers must also meet the same conditions as special workers in order to apply for a worker’s livelihood stabilization loan.
The conditions for non-regular workers are the same: they must belong to a workplace and continue working for more than three months, but there is no income requirement. If you are a daily worker, you only need to have worked at least 45 days according to the Employment Insurance Work Details Confirmation Report within 90 days prior to the application date.
The Korea Workers’ Compensation and Welfare Service operates a variety of loan systems, including wage reduction living expenses, small living expenses, wedding expenses, children’s school expenses, and medical expenses, so that workers can borrow funds according to their needs.
Considering the COVID-19 situation, you can apply for wage reduction living expenses immediately if your monthly income has decreased by more than 30% compared to before January 27, 2020, and you can receive support of up to 10 million won within the amount of wage reduction.
You can apply for a small amount of living expenses if your income has decreased due to reasons related to the business structure of your workplace, such as leave due to personal circumstances, seasonal business, etc. Monthly income must decrease by more than 30% from the previous month. The maximum limit is 2 million won.
Wedding expenses cover all costs necessary for the marriage of the worker and their children, and the limit is approximately 12.5 million won. Children’s tuition is a loan that supports the cost of education for workers with children attending high school, providing a loan of 5 million won per year for each child attending high school. Considering that the maximum limit is 10 million won, each child can apply up to twice.
In addition, workers can apply for worker livelihood stabilization funds for reasons such as funeral expenses, child support, and parental care expenses. The annual interest is all 1.5% per year, with ‘principal repayment in equal installments after 1 year of deferral’ or ‘principal equal installments over 4 years after 1 year of deferment’. You can choose to repay in installments.
To apply for a worker’s livelihood stabilization fund loan, you can access the Korea Workers’ Compensation and Welfare Service’s website, ‘Workers’ Welfare Net’, or visit the Korea Workers’ Compensation and Welfare Service branch in each region.
In addition, because the documents required for the worker’s livelihood stabilization fund differ depending on the type of loan you wish to apply for, it is a good idea to check the required documents through the Labor Welfare Net before applying.
