KAMCO "Credit Score Bonus for Diligent Debtors"

Follow-up Actions After MOU with NICE Pyeongga Information

[Asia Economy Reporter Minwoo Lee] Korea Asset Management Corporation (KAMCO) will implement a system that grants credit score incentives to debtors who are making diligent repayments.

On the 26th, KAMCO announced that it will implement the "Credit Score Incentive Support System." This is a follow-up measure to the "Agreement to Support the Return to Normal Financial Life for Financially Vulnerable Groups" signed between KAMCO and NICE Information Service last December. It was established to support debtors who are faithfully repaying their debts despite the COVID-19 crisis but face difficulties in financial transactions due to low credit scores.

The support targets are 1) unsecured debtors who have been diligently making installment repayments for more than 12 months, 2) have no overdue debts with other institutions, and 3) have a NICE credit score below 700, and who have no delinquencies or have fully repaid their debts.

Eligible individuals will receive credit score incentives for up to three years. In particular, those with longer diligent repayment periods or who have fully repaid their debts will be granted higher credit score incentives.

Additionally, KAMCO provides ▲ small loans up to 20 million KRW (differentiated by repayment period) ▲ issuance support for small credit cards to those who have diligently repaid for 24 months or more or have fully repaid (recommended by card companies). Furthermore, through the Debt Adjustment Review Committee, debtors who have diligently repaid 75% or more of the agreed amount but face special difficulties such as illness, or special debt-related persons (basic livelihood security recipients, elderly, etc.) who have repaid 80% or more after special remission, will have their remaining debts forgiven.

Kwon Nam-joo, President of KAMCO, said, "We hope this support system will be a source of hope for those who are making sincere efforts to recover even amid economic crises such as COVID-19," and added, "We will continue to strengthen various support measures to help diligent debtors quickly restore their credit and return to financial life."