"40 Million Won Borrowed 20 Years Ago, Finally Repaid Now"

A middle-aged man recently visited Shinbokwi to repay a loan
He borrowed tens of millions in the early 2000s for living expenses but couldn't repay
Long-term overdue interest grew to 100 million won, but debt adjustment began
Shinbokwi helped by partially forgiving principal and allowing long-term installment payments

"I came to repay the money I borrowed a long time ago."

[Asia Economy Reporter Song Seung-seop] Recently, a man who visited the on-site branch of the Credit Recovery Committee in the Honam region hesitantly said this to the counter staff. He was Kim Jin-cheon (62, pseudonym), who works as a day laborer at a subcontractor of a steel company. Kim told the puzzled staff, "I borrowed 40 million won 20 years ago and wanted to repay it late, but I didn't know how, so I came here," adding, "I feel very sorry for being so late."

Kim first borrowed money in the early 2000s when the aftermath of the International Monetary Fund (IMF) crisis had not yet faded. After working as an office worker at a small construction company, Kim lost his job due to the company's bankruptcy. Despite countless efforts to find reemployment, all attempts failed. Eventually, to support the livelihood of his spouse and two children, he began using card loans (long-term credit card loans) and cash advances.

With high interest rates, the loan amount began to grow rapidly. A vicious cycle of borrowing to repay other loans continued. At that time, 40 million won was difficult to manage with Kim's income, and failing to repay the money eventually led to his exclusion from society.

Decades later, Kim learned about the existence of the Credit Recovery Committee through the media. Although he is still low-income, Kim decided he must properly repay the money he borrowed and visited the committee.

The problem was that too much time had passed, making it difficult to verify Kim's loan details and related information. As a long-term delinquent for over 10 years, it was also hard to determine "to whom the money should be repaid." The committee used its own creditor change status inquiry system to find the long-term debt details. After searching civil cases in court, it was confirmed that he only needed to repay three financial institutions.

The remaining principal was 40 million won, as Kim remembered. Including the overdue interest accrued from the long period of non-repayment, the total debt amounted to a staggering 100 million won. The committee decided to apply a debt adjustment system that allows principal reduction for long-term delinquent debts. Kim repeatedly expressed his gratitude to the committee staff, as they relieved the burden he had carried for a long time.

A committee official said, "Our examiners also find creditors and lawsuit details," and advised, "If you feel anxious or burdened by old debts, please visit us and actively use debt relief and adjustment services."

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