Kim Ju-hyun, Chairman of the Financial Services Commission, Lee Young, Minister of SMEs and Startups, Kwon Nam-ju, President of Korea Asset Management Corporation, and other key officials are taking a photo after unveiling the plaque at the 'New Start Fund Launch Ceremony' held on the 4th at the Korea Asset Management Corporation Yangjae Tower in Seocho-gu, Seoul. Photo by Kang Jin-hyung aymsdream@
[Asia Economy Reporter Eunju Lee] The Saechulbal Fund, a debt restructuring program worth up to 30 trillion won, officially launched on the 4th. At the launch ceremony, Financial Services Commission Chairman Kim Joo-hyun repeatedly emphasized the need for the Saechulbal Fund’s debt restructuring policy to help self-employed individuals, who have suffered cumulative damage while cooperating with government quarantine policies during the COVID-19 period, to recover.
On the 4th, the Financial Services Commission and Korea Asset Management Corporation (KAMCO) held the Saechulbal Fund launch ceremony and agreement signing event at KAMCO Yangjae Tower in Seoul to support the recovery of small business owners and self-employed individuals. Attendees included Kim Joo-hyun, Chairman of the Financial Services Commission; Baek Hye-ryun, Chairperson of the Political Affairs Committee; Lee Young, Minister of SMEs and Startups; the Saechulbal Fund board members; heads of financial associations and institutions; and representatives of small business and self-employed organizations.
On this day, Chairman Kim Joo-hyun said, “Although COVID-19 quarantine measures have been lifted and the resurgence has subsided, the debts that small business owners find difficult to manage remain as they are. With rising prices, interest rates, and exchange rates, and an expected economic slowdown, reducing the burden of debt repayment has become essential for coexistence in our society.” He added, “There was considerable controversy before and after the launch of the Saechulbal Fund. Nevertheless, thanks to the efforts of those who prepared it, our people can now feel hope and warmth. Through the debt restructuring of the Saechulbal Fund launching today, we will support the social recovery of small business owners and the self-employed.”
Kwon Nam-joo, CEO of the Saechulbal Fund (President of Korea Asset Management Corporation), said, “During the spread of COVID-19, small-scale small business owners and self-employed individuals endured difficulties such as business hour restrictions and compliance with quarantine measures, cooperating silently with the quarantine policies, and their suffering was great.” He continued, “The Saechulbal Fund launching today is a national policy task to support the full recovery and leap forward of small business owners and the self-employed. We will do our best so that everyone can have hope and take off again.”
Baek Hye-ryun, Chairperson of the National Assembly’s Political Affairs Committee, also said, “During the COVID-19 period, small business owners and the self-employed faced many difficulties in maintaining their livelihoods while cooperating with government quarantine guidelines. I hope the Saechulbal Fund will be a great help in overcoming these difficulties.” She added, “To ensure the smooth launch of the Saechulbal Fund, the National Assembly also approved a capital increase of 1.1 trillion won for KAMCO to secure stable funding. I hope we will continue to build a people’s livelihood National Assembly that provides great comfort and strength to small business owners and the self-employed.”
Lee Young, Minister of SMEs and Startups, said, “The business conditions of small business owners and the self-employed have become vulnerable due to accumulated damage after passing through the COVID-19 tunnel. I hope the Saechulbal Fund can play an important role in supporting the new start of small business owners and the self-employed.” He added, “The Ministry of SMEs and Startups will also shift small business policies from protection to fostering and help them grow into key entrepreneurs in the post-COVID era.”
At the subsequent fund agreement ceremony, 19 heads of financial associations and institutions attended. These included the Korea Technology Finance Corporation, National Agricultural Cooperative Federation, Korea Forestry Cooperative Federation, National Credit Union Federation of Korea, Saechulbal Fund, Life Insurance Association, Korea Inclusive Finance Agency, Small Enterprise and Market Service, General Insurance Association, National Federation of Fisheries Cooperatives, Korea Credit Guarantee Fund, Korea Credit Guarantee Foundation, Credit Recovery Committee, National Credit Union Federation, Korea Financial Investment Association, Korea Federation of Banks, Korea Federation of Savings Banks, Korea SMEs and Startups Agency, and Korea Asset Management Corporation.
The Saechulbal Fund is a system that restructures debts of financially affected individual business owners and small business owners by purchasing debts through the fund or obtaining consent from financial companies. Considering the borrower’s repayment ability, the repayment period is extended and interest burdens are reduced. For borrowers unable to repay debts, the principal is reduced according to their repayment capacity.
The Saechulbal Fund began accepting debt restructuring applications from 9 a.m. on the same day. Self-employed individuals and small business owners wishing to apply can visit one of 76 offline service centers nationwide to submit their applications. Offline centers include 26 offices of Korea Asset Management Corporation and 50 Korea Inclusive Finance Agency centers. Applications can also be submitted through the Saechulbal Fund online platform. Meanwhile, the online pre-application for the Saechulbal Fund, which started on the morning of the 27th of last month, recorded a cumulative 22,180 applications as of the 29th, showing considerable enthusiasm for applications.
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