KAMCO Provides Additional Debt Reduction of 8.1 Billion Won for Vulnerable Groups and Diligent Repayers

One Person Meeting Good Faith Repayment Requirements Granted Full Debt Forgiveness

On the 25th, the Korea Asset Management Corporation (KAMCO) Debt Adjustment Review Committee members attended the "2022 1st Debt Adjustment Review Committee Meeting" at KAMCO Yangjae Tower in Gangnam-gu, Seoul, to deliberate on additional reductions for delinquent debtors. (Provided by KAMCO)

[Asia Economy Reporter Minwoo Lee] Korea Asset Management Corporation (KAMCO) has decided to provide additional debt relief for those who fall below the income criteria or have made diligent repayments.

On the 25th, KAMCO held the 'Debt Adjustment Deliberation Committee (hereafter Committee)' at the KAMCO Yangjae Tower in Gangnam-gu, Seoul, and announced that it reviewed and approved additional debt relief for delinquent debtors.

At this Committee, KAMCO examined the income level, assets, and repayment diligence of delinquent debtors and decided to reduce 81% of the principal debt amounting to 1.04 billion KRW for 31 individuals, totaling 810.5 million KRW, and to fully waive the remaining debt for one individual who met the diligent repayment requirements.

Since 2017, the Committee has supported a total of 4,471 people through debt principal reductions amounting to 72.2 billion KRW, exclusion of assets subject to recovery, and debt repayment deferrals. Additionally, the application period for purchasing claims on delinquent debts from financial companies, which was scheduled to end last year, has been extended until June this year. For self-employed individuals who diligently repay their debts, the small loan limit has been increased from 15 million KRW to 20 million KRW.

Since March 2020, special measures such as principal and interest repayment deferrals and debt relief have been implemented until June this year for 76,000 installment repayment debtors who are experiencing difficulties due to COVID-19.

Kwon Nam-joo, President of KAMCO, stated, "We will continue to improve support systems so that financially vulnerable groups can quickly return as normal economic agents and take the lead in implementing the government's inclusive financial policies."

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