Over 100,000 Applications for Saechulbal Fund Debt Adjustment... Totaling 16.7 Trillion Won

Korea Asset Management Corporation (KAMCO) and the Credit Counseling & Recovery Service announced on the 23rd that the number of applicants for debt adjustment under the 'New Start Fund,' a debt adjustment program exclusively for small business owners and self-employed individuals, has surpassed 100,000.

Yonhap News

As of the end of December last year, the cumulative number of debt adjustment applicants was 103,658, with total debt amounting to 16.7305 trillion KRW.

Under the 'purchase-type debt adjustment,' where the New Start Fund buys claims and directly adjusts debts, 29,638 people have signed agreements. Their principal debt amounts to 2.5803 trillion KRW, with an average principal reduction rate of about 70%.

Through the 'intermediary-type debt adjustment,' which adjusts interest rates and repayment periods without reducing the principal, 31,052 people have finalized their debt adjustments. The total debt amount is 2.345 trillion KRW, with an average interest rate reduction of approximately 4.7 percentage points.

Meanwhile, the New Start Fund is a debt adjustment program designed to alleviate the burden on self-employed individuals and small business owners who have suffered losses due to COVID-19 and are struggling to repay loans. Eligible participants include delinquent borrowers who have been in long-term arrears for more than three months, closed business owners, those who have been on leave for more than six months, borrowers using maturity extensions or repayment deferrals who cannot extend further, and borrowers with low credit scores.