South Korea's Financial Services Commission said on Monday that a revised enforcement decree for the law on supporting the financial lives of ordinary people was approved at a Cabinet meeting and took effect immediately.

The revision raises the common rate at which financial companies contribute to the Korea Inclusive Finance Agency.

The contribution rate based on household loan balances rises to 0.1 percent from 0.06 percent for banks and to 0.045 percent from 0.03 percent for non-bank financial firms.

As a result, an additional 134.5 billion won will be raised from banks and 62.8 billion won from non-bank firms, increasing annual funding by a total of 197.3 billion won. Total contributions from the financial sector are expected to expand to about 632.1 billion won from 434.8 billion won.

The commission explained that as external uncertainty grows, there is a higher chance that ordinary people and vulnerable groups will be driven toward illegal private lending, making it necessary to secure stable funding for policy finance for ordinary people.

The revision also includes a basis for the Korea Inclusive Finance Agency to provide credit guarantees to microloan users of the Credit Recovery Committee.

The Credit Recovery Committee plans to use this to expand microloan supply by 300.0 billion won from the current level, increasing it to about 420.0 billion won a year.

The commission said, "In addition to this enforcement decree revision, we will continue to identify and 추진 tasks to expand the supply of policy finance for ordinary people and lower interest rates, in order to improve financial access for ordinary people and vulnerable groups and ease their debt burdens and financial costs."