Jungjin-gong, Rehabilitation Support Campaign Through Debt Adjustment for Special Debtors

Up to 70% Reduction on Special Bonds and Waiver of Late Interest... Installment Repayment for Up to 10 Years

[Asia Economy Reporter Kim Cheolhyun] The Small and Medium Business Corporation (Chairman Kim Hakdo, hereinafter referred to as SBC) announced on the 2nd that it will conduct the 'Rehabilitation Support Campaign through Special Debtor Debt Adjustment' until the 30th of next month to support the recovery of small and medium venture business owners who are struggling with credit recovery due to the economic downturn caused by COVID-19.

This campaign targets insolvent debtors who have the willingness to repay but have weak repayment ability, providing customized debt adjustments according to their repayment capacity. The purpose is to contribute to creating conditions for a fresh start by supporting rapid credit recovery and return to normal economic activities.

The principal and interest of special claims are subject to a reduction rate of up to 70% (up to 90% for socially vulnerable groups). Installment repayment is possible for up to 10 years, and the remaining debt is fully waived upon completion of the scheduled repayment amount. If more than 5% of the scheduled repayment amount is repaid, deregistration of delinquency and other information is also supported.

Additionally, for insolvent debtors who find installment repayment difficult due to income reduction or job loss caused by COVID-19, a safety net is provided that allows repayment deferral for up to 2 years in 6-month increments during the installment repayment period to help resolve temporary difficulties.

Kim Byungsoo, Head of Management at SBC, said, "The rehabilitation support campaign through debt adjustment provides a social safety net by adjusting repayment amounts or periods within a manageable range for failed entrepreneurs who have inevitably become defaulters." He added, "We will actively respond to the government's policy of realizing inclusive finance by supporting a swift return to normal economic activities."

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