Seoul Credit Guarantee Foundation to Remove Credit Delinquency for Over 6,400 Small Business Owners This Year

Since the Introduction of the System in 2018, a Total of 10,334 People Have Been Given a Second Chance

[Asia Economy Reporter Jo In-kyung] The Seoul Credit Guarantee Foundation announced on the 27th that it has provided a chance for recovery to a total of 6,406 small business owners in the Seoul area by writing off special claims that have passed more than five years since subrogation payment, whose statute of limitations has expired, or claims confirmed for discharge through personal rehabilitation or bankruptcy ?1,768 in the first half of this year and 4,638 in the second half.

This is the largest scale among the 16 regional credit guarantee foundations nationwide.

The foundation first introduced this system in 2018 to actively support debtors' recovery, and so far has given a chance for recovery to a total of 10,334 small business owners.

Through this, the debtor's repayment responsibility is permanently extinguished, debt revival is fundamentally blocked, and credit information (bad credit information) is cleared, making it easier to use formal financial services. Small business owners who had difficulties due to remaining debts despite lacking repayment ability can resume normal economic activities.

The foundation plans to continue sequentially writing off non-performing loans every year to support new beginnings for small business owners.

Han Jong-gwan, Chairman of the Seoul Credit Guarantee Foundation, said, "We will actively take the lead in overcoming the economic crisis caused by the novel coronavirus infection (COVID-19) and realizing a win-win economy by providing recovery opportunities to sincere failures."

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