Kamco Reduces Late Payment Interest and Grants Repayment Deferrals for COVID-19 Debtors

Kamco's Measures to Alleviate Burden on COVID-19 Debtors

Measures to Reduce the Burden on Unsecured Bond Debtors Related to COVID-19 (5th). Photo by Korea Asset Management Corporation (KAMCO)

[Asia Economy Reporter Song Seung-seop] Korea Asset Management Corporation (KAMCO) will implement the 5th support measure to reduce debtors' overdue interest and defer repayments starting from the 30th.

According to KAMCO on the 29th, this additional measure is part of the 'Strengthening Support Measures for Vulnerable Individual Debtors' Recovery.' It was prepared to support overdue debtors facing economic difficulties due to COVID-19 and vulnerable debtors who are making sincere repayments.

The targets are those whose overdue started after March last year, those who had overdue before March but resolved it, and contracted debtors. Regardless of application, repayments for the targets will be uniformly deferred until the end of the year. Overdue interest incurred from March 2020 to the end of May 2021 will also be fully waived.

Contracted debtors who have no overdue but need repayment deferral due to income reduction can also receive support upon application. If vulnerable debtors have received special remission and sincerely repaid more than 80% of the repayment plan, they can have the remaining debt waived through the Debt Adjustment Deliberation Committee.

KAMCO plans to notify the targets of the support system, including repayment deferral, overdue interest reduction, and remaining debt waiver, via AlimTalk and text messages starting the next day.

The 'Personal Overdue Debt Purchase Fund,' operated since June last year to support vulnerable debtors affected by COVID-19, will also be extended for six months until the end of December. The targets are individuals with unsecured loan debts overdue from February last year to the end of this year, who face difficulties in debt adjustment due to screening rejection, refusal, or expiration. Under this measure, debtors can apply to sell their financial institution-held claims to KAMCO.

When financial companies sell personal overdue claims held for soundness management, KAMCO purchases them and waives overdue interest until the end of COVID-19. Depending on income recovery, repayment deferral (up to 2 years) and installment repayment (up to 10 years) will be provided, or debt will be reduced by up to 60% to support debtors.

Cheon Jeong-woo, Head of Household Support Division at KAMCO, emphasized, "With this additional measure, we hope that those willing to repay but whose economic activities are restricted due to the prolonged COVID-19 pandemic will not fall into greater difficulties. KAMCO will continue to provide support to help overcome these challenges."

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