"Small Business Owners Who Operated During COVID-19 Eligible for Debt Adjustment"

Kamco and Credit Recovery Committee Expand Support Scope
From April 2020 to November Last Year
Applicable to Small Business Owners and Self-Employed Running Businesses

Korea Asset Management Corporation (KAMCO) and the Credit Counseling and Recovery Service (CCRS) have decided to abolish the COVID-19 damage requirement for the New Start Fund, which supports debt adjustment and business recovery for self-employed individuals. Additionally, the applicable period for small business owners and self-employed individuals who operated businesses will be extended from April 2020 through May last year to November last year.

KAMCO and CCRS announced on the 8th, "As announced in the economic policy direction on the 4th, the COVID-19 damage requirement for the New Start Fund will be abolished, allowing any small business owner or self-employed person who operated a business from April 2020 through November last year to be eligible for debt adjustment through the New Start Fund." They have been operating the tailored debt adjustment program ‘New Start Fund’ since October 2022 to support the recovery of small business owners and self-employed individuals struggling due to COVID-19 damage.

Chairman Kim Juhyun of the Financial Services Commission, Minister Lee Young of the Ministry of SMEs and Startups, President Kwon Namjoo of the 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 Jinhyung aymsdream@

This expands the support target beyond the previously announced expansion plan on December 12 last year (covering April 2020 through May last year). KAMCO explained that to ensure smooth implementation, they will revise the New Start Fund support agreement, build the IT system, and apply and enforce the changes starting from the 1st of next month.

Meanwhile, the existing excluded industries remain unchanged, and regardless of the support expansion implementation, small business owners and self-employed individuals who have directly suffered from COVID-19, such as through disaster relief funds, can apply immediately. As of the end of December last year, 46,401 small business owners and self-employed individuals had applied for the New Start Fund, with their total debt amounting to 7.4117 trillion KRW. Among them, 15,417 people (with debts of 1.2183 trillion KRW) who received purchase-type debt adjustment were granted an average principal reduction of about 70%, and 13,539 people (with debts of 873 billion KRW) who received mediation-type debt adjustment were granted an interest rate reduction of about 4.5 percentage points.