Expansion of Debt Reduction in Kibo... Active Support for Restarting Diligent Failures

Kibo launches campaign to support credit recovery and business resurgence for debtors

The Korea Technology Finance Corporation (Kibo) announced on the 24th that it will conduct a temporary "Rehabilitation Support Activation Campaign" for about two months to support the credit recovery of debtors and expand the foundation for their resurgence.

This campaign was prepared to provide opportunities for rehabilitation to debtors with weak repayment ability and to support rapid credit recovery by expanding debt adjustment. Kibo plans to reduce the repayment burden on debtors and encourage early repayment by applying relaxed conditions, such as expanding the scope of debt reduction and increasing the discount rate for present value repayment (a lump-sum repayment calculated by converting installment payments into present value).

During the campaign period, Kibo will actively apply additional reduction rates and other benefits by comprehensively reviewing the characteristics of the held claims and repayment ability for debtors who enter into installment repayment agreements. Debtors willing to repay can apply for debt adjustment under relaxed conditions through the Kibo Rehabilitation Support Center.

Additionally, Kibo operates the Rehabilitation Support Guarantee System on a regular basis to support entrepreneurs wishing to restart their businesses. Companies separately operated by Kibo debtors with excellent technology can receive new guarantees along with debt adjustment. Kibo plans to actively create an environment for re-establishment to support the technology-based growth and leap of small and medium-sized enterprises (SMEs) attempting a comeback.

Kim Jong-ho, Chairman of Kibo, said, “Since 2018, Kibo was the first guarantee institution to introduce a principal reduction system, lowering the threshold for debtors' credit recovery and supporting their swift economic return.” He added, “This Rehabilitation Support Activation Campaign aims to support the new leap of SMEs seeking hope even in crisis. Kibo will continue to strengthen support infrastructure such as customized rehabilitation solutions to actively support the successful rehabilitation of SMEs attempting a comeback.”