Jungjinkong Supports Business Failure Recovery... 'Practicing Inclusive Finance'

Second Special Debtor Reboot Campaign... Until December 29
Maximum 70% Debt Reduction Applied Uniformly... Up to 2 Years Repayment Deferral for Unemployment or Business Closure
63 Special Debtors Supported with 3.2 Billion KRW Debt Reduction in August First Reboot Campaign

[Asia Economy Reporter Kim Cheol-hyun] The Small and Medium Business Corporation (Chairman Kim Hak-do, hereinafter referred to as SBC) is taking steps to practice inclusive finance by supporting the recovery of business failure victims. SBC announced on the 29th that it will conduct the 2nd Special Debtor Reboot Campaign for one month until the 29th of next month due to the prolonged COVID-19 pandemic.

In August, under difficult economic conditions such as the recession and employment shocks caused by COVID-19, SBC conducted the 1st Special Debtor Reboot Campaign to support the recovery of small and medium venture entrepreneurs who experienced business failure. In the 1st Reboot Campaign, debt relief totaling 3.2 billion KRW was provided to 63 debtors with failure experience.

In this 2nd campaign, SBC will uniformly apply the highest special debt relief rate of 70% (90% for socially vulnerable groups) and fully exempt overdue interest. In addition, the condition for removing bad credit information has been significantly lowered from one-tenth to one-twentieth of the scheduled repayment amount.

During the campaign period, in addition to COVID-19 victims, if special debtors request repayment deferral due to income reduction caused by job loss or business closure from COVID-19, deferral measures will be applied for up to two years in six-month increments. Especially in this campaign, by prioritizing identifying debt adjustment needs for special debtors under 40 years old, the plan is to support young people’s rapid credit recovery and return to economic life.

Choi Hak-su, Head of Innovation Growth Division at SBC, said, "We will realize inclusive policy finance by supporting small and medium venture entrepreneurs with failure experience to restart normal economic activities," and added, "We will especially support special debtors under 40 years old to recover their credit more quickly."