Han Dong-hoon, a presidential primary candidate from the People Power Party, announced a policy package aimed at alleviating the student loan burden on university students. The proposals include a “repayment break” that allows loan repayment to be deferred for up to 12 months without conditions, and a “corporate replacement repayment system,” where companies can pay off loans on behalf of their employees.
Bae Hyun-jin, a lawmaker from the People Power Party and head of strategy at Han’s campaign, held a press conference at the National Assembly communication center to unveil the “Youth Student Loan Burden Reduction” pledge. The proposed “repayment break system” would allow borrowers to postpone loan repayments temporarily, regardless of their circumstances, to provide them with sufficient financial leeway.
Currently, loan repayment deferral is only applicable in special cases such as unemployment, disaster, or the death of a parent. The proposal also introduces a “corporate replacement repayment system,” encouraging voluntary participation from businesses by offering incentives like corporate tax reductions.
In Bae’s words, the system is designed to ensure the security of student loans, reduce the repayment burden for youths, and provide companies with an opportunity to secure talent through a collaborative system. A similar initiative exists in Japan, where companies participate in a “corporate repayment program” that saw an increase from 65 companies in 2021 to 2,781 by the end of last year.
Moreover, the income threshold for mandatory loan repayment is set to increase from the current monthly income of 2.37 million won to 3 million won, equivalent to an annual income increase from approximately 28.51 million won to 36.58 million won. According to 2025 data from the Office for Government Policy Coordination, the average monthly living expense for youth households is 2.13 million won, indicating that the current obligation could significantly impact their financial situation.
Bae emphasized the difficulties faced by young professionals who struggle to cover high rent and utility bills, describing their reality as one where every won counts. The campaign aims to provide a solid foundation for young people to confidently achieve independence and assures them that the state will support them until they are able to thrive.