Hike in bank deposit insurance, child support coverage among 160 forthcoming gov't policies
Published: 02 Jul. 2025, 13:51
Updated: 02 Jul. 2025, 19:38
Audio report: written by reporters, read by AI
![Citizens walk across the Gwanghwamun Square in central Seoul on July 1. [YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2025/07/02/e5124d06-261e-4b37-a9ed-1354da02704e.jpg)
Citizens walk across the Gwanghwamun Square in central Seoul on July 1. [YONHAP]
From Sept. 1, the insurance limit for bank deposits will double from 50 million won ($36,700) to 100 million won. Starting this month, payments made for using sports facilities will be eligible for a 30 percent income tax deduction. The government will also spot child support for parents who refuse to pay court-ordered support after a divorce.
The government published a booklet on Tuesday with a title that roughly translates to “Changes Starting in the Second Half of 2025” outlining 160 new policies by sector, implementation date and oversight agency.
In the economy and finance sector, the most notable change is the increased bank deposit insurance limit. This cap, unchanged since 2001, is being raised from 50 million won to 100 million won. In the event a financial institution becomes unable to return deposits, the Korea Deposit Insurance Corporation will reimburse up to that limit, including interest. This coverage will also extend to retirement pensions, pension savings and insurance payouts.
From this month, expenses for using facilities like swimming pools and gyms will be included in the tax credit category for credit card spending. Employees earning 70 million won or less annually are eligible for the 30 percent deduction.
As of Monday, the third-stage debt service ratio regulation applies to all loans. This policy aims to pre-emptively account for potential increases in debt burdens from interest rate hikes and will effectively lower loan limits.
![A passerby walks in front of an SK Telecom store in Seoul on May 26. [NEWS1]](https://koreajoongangdaily.joins.com/data/photo/2025/07/02/ee5dbe01-a210-45f0-acbc-c0b84f40472c.jpg)
A passerby walks in front of an SK Telecom store in Seoul on May 26. [NEWS1]
In the industrial sector, the annual revenue cap for small- and medium-sized enterprises will increase from 150 billion won to 180 billion won for the first time in a decade. Businesses within this range will remain eligible for tax benefits, public procurement preferences and government support.
The Mobile Device Distribution Improvement Act — which was intended to supplement mobile phone purchases with a mandated subsidy from mobile carriers but proved to be ineffective — will be abolished after 10 years on the books.
Starting July 22, amendments to the Act on Registration of Credit Business and Protection of Finance Users will invalidate any predatory lending contracts involving sexual exploitation, bodily harm, violence, threats or exorbitant interest rates — both principal and interest will be nullified. Penalties for illegal private lending will also increase, with maximum sentences raised to 10 years in prison and fines up to 500 million won.
A new child support program that advances payments to single-parent families who are not receiving court-ordered support from their former partner began Monday. The government will later reclaim the funds from the noncustodial parent.
National scholarships will increase by up to 400,000 won annually starting in the second semester of the 2025 academic year. Citizens will also be able to obtain mobile IDs via private apps like Naver, Toss and KakaoBank from the latter half of the year.
![The National Assembly building in western Seoul on June 4 [YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2025/07/02/1bd6665b-1c1d-46af-95ef-faae70ec108f.jpg)
The National Assembly building in western Seoul on June 4 [YONHAP]
Vocational high school graduates enlisting in the military in the second half of the year will be eligible to apply for a specialized program where they can apply for posts that are related to 84 skills categories, up from the limited few previously available.
In the labor sector, a new law targeting habitual wage arrears will take effect in October. Business owners with repeated violations will face credit penalties and be excluded from receiving government subsidies or support. Affected workers will be able to claim damages up to three times the amount of unpaid wages. Employers will still be eligible for government subsidies even if a worker voluntarily resigns within six months after using parental leave or reduced working hours for child care.
Starting in October, charges of grooming children and adolescents can apply to offline interactions — previously, such offenses were only prosecutable if committed via digital communications. Agricultural promotion zones will now be allowed to set up shelters to protect farmers during heat waves or cold spells.
Adoption limits at animal protection centers will increase from three to 10 animals per person, provided proper care records are verified. The change aims to encourage more adoptions of abandoned or lost animals.
Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY JANG WON-SEOK, IM SOUNG-BIN [[email protected]]
with the Korea JoongAng Daily
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