[Digital Today reporter Ji-young Lee] Financial firms' mandatory contributions to the Korea Inclusive Finance Agency are expected to be extended to 2036. A bill to delay by 10 years a sunset clause for the contribution scheme, which was set to expire on Oct. 8, passed a legislative subcommittee of the National Assembly's Political Affairs Committee.

On Sept. 2, the Political Affairs Committee's Legislative Review Subcommittee No. 1 approved amendments to the Act on Support for the Financial Life of Ordinary People to extend the period of financial firms' mandatory contributions to the agency.

Under current law, banks, insurers, mutual finance institutions, savings banks and specialised credit finance companies contribute a certain proportion of loans and other items to the agency. The contributions are used as funding for policy financing for low-income borrowers, including Sunshine Loan programmes.

The current contribution obligation was set to sunset on Oct. 8, but it will remain in force until 2036 if the amendment is ultimately passed.

A plan to set up a separate "Stabilisation Fund for Inclusive Finance" at the agency was not concluded on the day.

The amendment is set to go to a full committee meeting of the Political Affairs Committee and review by the Legislation and Judiciary Committee before being submitted to a plenary session of the National Assembly.