Personal Delinquent Claims Purchase by KAMCO, Applications Accepted Online and Offline from the 29th

[Asia Economy Reporter Kim Hyo-jin] The Korea Asset Management Corporation (KAMCO) will begin accepting applications on the 29th for the purchase of individual delinquent loans to help those affected by the novel coronavirus infection (COVID-19) recover.

According to financial authorities on the 27th, KAMCO launched a KRW 2 trillion scale individual delinquent loan purchase program on the 25th based on agreements with all financial sectors.

Accordingly, from the 29th until the end of June next year, KAMCO plans to regularly purchase individual delinquent loans by accepting applications from financial companies and debtors.

Applications can be made online through the OnCredit website (www.oncredit.or.kr) or by visiting one of KAMCO's 12 regional headquarters nationwide (☎1588-3570).

All financial sectors including banks, savings banks, credit finance companies, mutual finance, and insurance have agreed to refrain from excessive collection efforts on unsecured personal loans that became delinquent between February and December this year, and to sell such loans only to KAMCO if sale is deemed unavoidable for soundness management.

The financial sector also agreed to waive delinquency interest charges after debt write-off regardless of whether the loan is sold, to reduce the burden of delinquency.

Debtors who have applied for debt adjustment through the Credit Counseling and Recovery Service but face difficulties due to opposition from financial companies can also request loan purchase from KAMCO.

Once KAMCO receives a loan purchase application, financial companies will immediately stop collection efforts and enter into a loan transfer contract with KAMCO to sell the loans.

After purchasing the loans, KAMCO plans to waive delinquency interest until the COVID-19 situation ends and suspend active collection such as repayment demands. Additionally, depending on the debtor’s income recovery, KAMCO will support recovery through up to 2 years of repayment deferral, up to 10 years of long-term installment repayment, and up to 60% debt reduction.

This content was produced with the assistance of AI translation services.