2.66 Million Out of 2.98 Million Credit Amnesty Recipients Benefit
Credit Recovery Support Including Credit Score Improvement
On the 9th, officials were busy moving in the corridor of the Financial Services Commission at the Government Seoul Office in Jongno-gu, Seoul, where financial authorities decided to include mortgage loans (Judaemae) in the 'refinancing loan' infrastructure scheduled to be launched in May by the end of the year. Financial authorities explained that they aim to reduce the interest burden on mortgage loans by establishing a refinancing loan platform that allows users to compare financial sector loan interest rates at a glance and switch loans easily. Photo by Yoon Dongju doso7@
Out of 2.98 million eligible individuals for the credit forgiveness program that deletes delinquency records upon full repayment of overdue amounts under 20 million KRW, 2.66 million have benefited. The remaining 320,000 can also receive credit recovery support benefits if they fully repay by the end of this month.
On the 2nd, the Financial Services Commission announced that 2.66 million people have benefited from the "Rapid Credit Recovery Support Measures for Low-Income and Small Business Owners," which has been in effect since March 12. The remaining 320,000 can also receive credit recovery support benefits if they fully repay their overdue amounts by the end of May. This applies to cases where small overdue amounts under 20 million KRW occurred between September 1, 2021, and January 31 of this year, but were fully repaid by the 31st of this month.
During this period, approximately 2.98 million individuals (based on NICE Information Service data) and about 310,000 sole proprietors (based on Korea Credit Data) experienced small overdue amounts. As of the end of February, among them, about 2.64 million individuals and approximately 175,000 sole proprietors had fully repaid their overdue amounts. The number of individuals who repaid increased by 20,000 by the end of last month. Once the overdue amount is fully repaid, credit recovery support is provided immediately without a separate application.
Eligibility for credit recovery support and information on overdue amounts eligible for credit recovery upon full repayment can be checked on the websites of individual credit evaluation companies for low-income individuals and sole proprietors.
Shin Sang-rok, Director of the Financial Data Policy Division at the Financial Services Commission, explained, "We will monitor the operation status with related organizations such as the Credit Information Center to ensure that the credit recovery support measures proceed smoothly until the 31st. We also plan to continue online and offline promotions so that more citizens can complete full repayment and receive credit recovery support benefits."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
