Saechulbal Fund Accelerates Aiming for Launch on October 4

[Asia Economy Reporter Song Hwajeong] Financial authorities are accelerating preparations to launch the Saechulbal Fund on the 4th of next month.

According to the Financial Services Commission on the 7th, the Saechulbal Fund online platform is currently under construction with the goal of opening on the 4th of next month.

Since small business owners and self-employed individuals who need debt adjustment must check their eligibility and apply through the online platform, building this platform is one of the most important tasks for the launch of the Saechulbal Fund.

In particular, it is necessary to securely link various information scattered across the government, related institutions, and financial sectors through computerized systems so that eligibility can be easily verified on the platform after obtaining consent for personal information. Although this work was expected to take considerable time, the Financial Services Commission plans to complete it as quickly as possible and open the platform on the targeted date.

Efforts are also being made to promote understanding of the Saechulbal Fund. After announcing detailed plans for the fund at the end of last month, the Financial Services Commission immediately conducted staff training and started operating call centers. Currently, the call centers of the Credit Counseling and Recovery Service and Korea Asset Management Corporation (KAMCO) are providing consultations related to the Saechulbal Fund, guiding borrowers on eligibility, application procedures and details, effects and disadvantages of support, and specific precautions tailored to their situations.

Additionally, there are plans to visit small and medium-sized enterprises and small business sectors directly to explain the Saechulbal Fund. At the 'Financial Issues Related SME and Small Business Industry Meeting' held jointly by the Ministry of SMEs and Startups, the Financial Services Commission, and the Financial Supervisory Service on the 5th, there were requests to promote the fund clearly to avoid misunderstandings about debt forgiveness and to address concerns that the fund’s contents are difficult to understand. Accordingly, the Financial Services Commission plans to visit each related association that attended the meeting to explain and strengthen communication.

The Financial Services Commission’s acceleration of the Saechulbal Fund launch is interpreted as an effort to ensure swift debt adjustment without any gap following the expiration of the maturity extension and repayment deferral measures for small business owners at the end of this month. Byun Jeho, Director of Financial Policy at the Financial Services Commission, explained, "The maturity extension and repayment deferral measures ending at the end of September do not mean all maturities come due on October 1. Borrowers who applied for maturity extension six months ago will have maturities on October 1, but those who applied on September 30 will have maturities in March next year, so most maturities are scattered. We are making thorough preparations for the implementation of the Saechulbal Fund."

There is also a possibility that the maturity extension and repayment deferral for small business owners ending this month could be extended again. It is known that the industry requested one more extension at the SME and small business industry meeting. In response, Kim Joo-hyun, Chairman of the Financial Services Commission, said, "There is a possibility of extension. It is not yet confirmed, but since there were many difficulties mentioned at the meeting, we need to consider that and are contemplating various measures, including utilizing the Saechulbal Fund."

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