KAMCO Extends Uniform Repayment Deferral for COVID-19 Delinquent Debtors Until June Next Year

6th Support Measures to be Implemented from 'January Next Year'

[Asia Economy Reporter Kwangho Lee] Korea Asset Management Corporation (KAMCO) will reduce overdue interest and defer repayments to ease the repayment burden on debtors experiencing economic difficulties due to the prolonged COVID-19 pandemic.

KAMCO announced on the 28th that it will implement the 6th support measure containing these details starting January next year. This support measure is a response to the government's 'Strengthened Support Plan for Vulnerable Individual Debtors' and was prepared to help economic recovery for KAMCO contracted debtors and financial institution debtors who incurred arrears due to COVID-19.

First, among debtors who have installment repayment agreements with KAMCO, those whose arrears began after March 2020, or those who had arrears before but have since resolved them, will have their repayments uniformly deferred until the end of June next year regardless of application. In this case, all overdue interest accrued from March 2020 to the end of last November will also be fully waived.

KAMCO plans to individually notify eligible persons via AlimTalk (text message) from the 31st to inform them about the support system such as repayment deferral and overdue interest reduction.

Additionally, to support financial institution debtors affected by COVID-19, KAMCO will extend the operation period of the 'Personal Overdue Debt Purchase Fund,' which has been operating from June last year to this month, by six more months until the end of June next year.

Accordingly, debtors can request KAMCO to purchase unsecured personal loan claims from financial institutions that became overdue between February 2020 and June next year, which failed debt adjustment due to reasons such as rejection, refusal, or expiration by the Credit Recovery Committee.

Financial institutions may also directly sell their held personal overdue claims to KAMCO if necessary for soundness management due to the prolonged COVID-19 situation.

Through the Personal Overdue Debt Purchase Fund, KAMCO will waive overdue interest on purchased overdue claims until the end of the COVID-19 pandemic and support repayment deferral (up to 2 years), installment repayment (up to 10 years), and debt reduction (up to 60%) depending on the debtor's income recovery level.

Cheon Jeong-woo, Head of KAMCO Household Support Headquarters, said, "We hope this support measure will help those facing economic difficulties due to COVID-19 to stand back up," adding, "We will continue to prepare effective support plans and strive to overcome COVID-19 together with the people."

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