Jung Jeonghun, KAMCO President: "Only 12 of Top 30 Lending Companies Joined New Leap Fund"

Jung Jeonghun, President of Korea Asset Management Corporation Photo by Yonhap News

It has been found that participation by lending companies in the New Leap Fund, which provides debt relief for financially vulnerable borrowers, remains low. The government plans to continue persuading major lending companies to join the New Leap Fund by the end of the year.

Jung Jeonghun, President of Korea Asset Management Corporation (KAMCO), explained at a Financial Services Commission work report held at the Government Complex Seoul in Jongno-gu, Seoul on January 13, "Most lending company claims are held by the top 30 companies, but as of the beginning of this year, only 12 companies had joined the New Leap Fund."

President Jung stated, "In the case of the lending industry, unlike banks or credit card companies, overdue claims may constitute the entirety of a company's assets, or nearly all of its business operations. Since they have to transfer their key assets, it is difficult for them to join the New Leap Fund."

He emphasized, "We will work to ensure that most lending companies can join the New Leap Fund by the end of the year by providing acquisitions at necessary times and offering incentives to alleviate various difficulties."

Meanwhile, KAMCO has secured a government budget of 40 billion won for the operation of the New Leap Fund, which restructures debts of up to 50 million won that have been overdue for more than seven years. Of this amount, the financial sector contributed 36.74 billion won.