Daegu City to support 2,510 youths with student loan repayments

Daegu City, iM Bank, and the Korea Student Aid Foundation have signed a memorandum of understanding to support approximately 2,510 young people in the Daegu and Gyeongbuk regions who are struggling to repay student loans. The initiative is funded by a 500 million won social contribution fund provided by iM Bank.

The program utilizes a “self-repayment matching method” designed to encourage financial independence. For approximately 1,842 long-term non-repayers, the program will provide up to 200,000 won per person if they repay 5% to 10% of their principal and interest. For approximately 668 long-term delinquents who have been overdue for six months or more, the program will provide up to 1 million won per person to assist with initial installment payments and credit recovery.

In addition to direct financial aid, Daegu City will provide administrative support and link the program to other youth policies, including employment competency programs and one-on-one financial counseling through the “Youth Financial Clinic.”