Seoul Credit Guarantee Foundation Debt Cancellation for Diligent Small Business Owners, Giving 5,109 People a Second Chance

[Image source=Yonhap News]

[Asia Economy Reporter Lim Cheol-young] The Seoul Credit Guarantee Foundation announced on the 21st that it will write off special bonds that have been overdue for more than three years after subrogation and whose debtors, despite lacking sufficient capacity to repay the foundation's debts in full, have faithfully completed repayment through various debt adjustment programs. This will provide a chance for recovery to 5,109 small business owners in Seoul in the first half of the year.

The main targets are debtors who have faithfully repaid their debts over 8 to 10 years through the Credit Recovery Committee, those who have faithfully implemented repayment plans for 3 to 5 years through the court's personal rehabilitation procedures and have been discharged, or those who have been discharged through bankruptcy discharge procedures.

The foundation has been conducting write-offs twice a year since it first introduced this system in 2018 to actively support the recovery of debtors who have failed despite their sincerity.

Through this, small business owners who previously had difficulties using formal financial services due to remaining debts despite lacking repayment ability can resume normal economic activities.

Going forward, the foundation plans to sequentially write off special bonds overdue for more than three years after subrogation, which have been confirmed for credit recovery, personal rehabilitation, or bankruptcy discharge, to help small business owners make a fresh start.

Chairman Han Jong-gwan said, “Since the introduction of the write-off system in 2018, countless small business owners have been able to have hope for recovery,” and added, “The foundation will continue to actively lead efforts to provide ongoing recovery opportunities for sincere defaulters, participate in overcoming the livelihood economic crisis caused by the prolonged COVID-19 pandemic, and realize inclusive finance.”

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