By Kim Tae-jong
Staff Reporter

Seoul Metropolitan Government will introduce a new welfare project for the poor.

``The middle class has shrunk and the lower class has increased in this financial crisis, causing social polarization,'' Seoul Mayor Oh Se-hoon said Monday during a news conference. ``That has urged the municipal government to take action to help its citizens. And our new project will be something that they can depend on.''

The project, titled ``Seoul, Hope and Dream,'' is different from other welfare programs as the city government will actively offer financial support to the lower class and help them stand by themselves, Oh said.

The project includes the introduction of support for families in crisis; loans for the poor; and education funds for students.

A new installment savings plan will help the poor to save money in the form of matching funds. If an eligible citizen lays aside a monthly reserve in the account for a certain period of time, the city government and a charity organization will deposit the exact same amount of money.

The city will also provide five million won in funds to families suffering from accidents such as fire, which put them on the verge of falling into the lowest-income bracket. Up to 3,500 households will benefit from the fund by 2010.

Underprivileged families can get loans of up to 10 million won without provision of collateral, with 2,600 households eligible for the loan program by 2010.

The city government will also run job placement programs and offer cultural and art classes.

It will come up with details of the plans by the end of the year, including the criteria of those who are eligible.

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