Six-Month Loan Repayment Deferral for Heavy Rain Victims... 60-70% Debt Reduction Possible

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[Asia Economy Reporter Kim Hyo-jin] Those affected by the recent continuous heavy rains can now receive debt adjustment and additional low-interest loans for self-employed individuals.

The Financial Services Commission announced such financial support measures on the 11th.

The financial authorities stated that if borrowers who used financial institution loans suffered flood damage from this heavy rain and have difficulty repaying their loans, they can newly apply for debt adjustment or re-adjustment at the Credit Recovery Committee and receive debt reduction. Once the debt adjustment or re-adjustment is confirmed, a six-month principal repayment deferral will be immediately applied. Differentiated interest rate reductions, principal loan reductions, and installment repayments are also possible depending on the delinquency period.

If there is debt to the National Happiness Fund or Korea Asset Management Corporation (KAMCO), the principal of the relevant debt can be reduced by 70% (National Happiness Fund) or 60% (KAMCO).

Additionally, those residing in special disaster areas designated due to this flood damage or operating businesses in those areas can receive repayment deferral and preferential benefits for new loans on existing loans from Microfinance or Traditional Market Merchants Associations. Principal repayment on existing loans can be deferred for six months, the loan limit can be increased up to 10 million KRW, and Microfinance loans come with preferential interest rate benefits.

Proof of damage can be provided with a certificate issued by the relevant local government. For detailed information, contact the Credit Recovery Committee (1600-5500 or 1397), KAMCO (1588-3570), or the Korea Inclusive Finance Agency (1397).