Kamco Grants Additional 1.5 Billion KRW Principal Reduction to Delinquent Debtors

CAMCO debt adjustment review committee members attended the "2021 3rd Debt Adjustment Review Committee" at CAMCO Seoul Eastern Regional Headquarters on the 19th to review additional reductions for delinquent debtors.
[Photo by Korea Asset Management Corporation]

[Asia Economy Reporter Song Seung-seop] Korea Asset Management Corporation (KAMCO) announced on the 23rd that it has implemented additional debt relief on the principal amounting to 1.523 billion KRW for 46 delinquent debtors.

On the 19th, KAMCO held the '2021 3rd Debt Adjustment Deliberation Committee' at the Seoul Eastern Regional Headquarters to review and approve related agenda items.

The committee, after assessing repayment ability and relief criteria, decided to reduce the debt by approximately 1.232 billion KRW, about 80%, for 45 individuals, and to fully waive the remaining debt for one individual who met the conditions for faithful repayment.

In addition to general relief based on the debt adjustment index, the committee determines necessary measures such as ▲additional relief for debtors below income criteria ▲exclusion of livelihood-related assets from recovery targets ▲relief of remaining debt for faithful repayors ▲debt repayment deferral ▲support for debtor rehabilitation.

The committee consists of a total of seven members: five external experts from the legal and academic fields and two internal experts from KAMCO, and it is held regularly every month.

Since 2017, the committee has been held 45 times, providing debt principal relief amounting to 53.1 billion KRW for a total of 1,665 individuals. Since March last year, special measures such as repayment deferral for faithful repayors have been implemented to support credit recovery for small business owners and individual delinquent debtors who have suffered direct damage such as decreased sales due to the prolonged COVID-19 pandemic.

Cheon Jeong-woo, Head of KAMCO's Household Support Division, emphasized, “We will continue to improve and monitor the system so that those struggling with debt do not lose hope.”

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