Yongin City Launches Support for Youth Credit Recovery

[Asia Economy (Yongin) = Reporter Lee Young-gyu] Yongin City in Gyeonggi Province is stepping up to help young people who are struggling with loans or employment due to lowered credit ratings caused by long-term delinquency on student loan repayments.

On the 3rd, Yongin City announced that it will carry out the "Youth Credit Recovery Support Project," which provides an initial payment support of 10% of the debt amount required to conclude a loan installment repayment agreement (up to 1 million KRW) to help young people who have become "credit caution subjects" due to failure to repay student loans on time recover their credit.

Once designated as a credit caution subject, most financial transactions such as credit cards and loans are restricted, and it may become difficult to get hired by companies that place importance on credit.

The support target is young people aged 39 or younger who have been registered with credit evaluation information at the Korea Student Aid Foundation due to long-term delinquency on student loans, and who themselves or whose parents have been residents registered in Yongin City and have lived there for more than one year.

Those who wish to apply can download the application form and the consent form for the use of personal information from the city’s website under public notices, fill them out, and apply by sending them to the person in charge via email (snazzyguy@korea.kr).

The application period is from the 14th of this month to the 14th of next month.

Selected applicants will conclude a loan installment repayment agreement with the Korea Student Aid Foundation, and the city will support the initial payment amounting to 10% of the debt, up to 1 million KRW.

The Korea Student Aid Foundation will remove the registration of the credit evaluation information for the respective young person and fully waive the overdue interest.

The city plans to review the eligibility of applicants, select recipients, and notify them individually.

A city official said, "Helping young people who have become credit caution subjects to become economically independent is a realization of basic youth welfare," adding, "We will continue to discover various policies that can protect and support the young people who will lead our society."

Meanwhile, the city signed a business agreement for the "Youth Credit Recovery Support Project" with the Korea Student Aid Foundation in March last year. Since then, it has helped 31 young people struggling with student loans recover their credit.

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