Korea lowers cap on student loan interest rates
What it does: Lowers the interest rate cap on income-contingent loans
Took effect: June 19
Starting on June 19, the interest rate cap on income-contingent loans will be lowered to reduce the burden of repayment for college graduates. Previously, the interest rate was capped at 120 percent of the average yield of five-year state bonds for the three years preceding each semester. This will be reduced to 110 percent.
This is the first reduction in the interest rate cap since the implementation of the income contingent loan system in 2010, and it is expected to help ease the financial burden on students who borrow money for education and support their financial independence.
Income Contingent Loans are a student loan program where repayment is tied to the borrower's income after they graduate and find employment. This means that the amount repaid each month, and the total repayment period, can vary based on the borrower's income level.
What it does: Legally blocks drivers from interfering with police officers conducting blood alcohol tests
Took effect: June 4
Starting on June 4, interference with a breathalyzer test, including by consuming additional alcohol with the intent to obfuscate the results, will be prohibited. Violation of this regulation will be subject to criminal punishment, the same as refusing to take a breathalyzer test. And the driver's license will be revoked and the person will not be able to obtain a new license for a certain period of time. In addition, if a suspect causes a traffic accident while trying to evade a breathalyzer test, the offender will face harsher penalties, including the possibility of prosecution regardless of the victim's intent or whether the offender is covered by comprehensive insurance.
- In collaboration with the Ministry of Government Legislation, The Korea Herald publishes a monthly article on laws that have recently been updated in South Korea. The ministry's Easy Law service (https://www.easylaw.go.kr/CSM/Main.laf) provides accessible summaries of Korean laws grouped by category in English and 11 other languages: Arabic, Bengali, Cambodian, Simplified Chinese, Indonesian, Japanese, Mongolian, Nepali, Thai, Uzbek and Vietnamese -- Ed.
mkjung@heraldcorp.com
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