Incheon City Supports Small Business Owners and Financially Vulnerable Groups to Recover... Debt Adjustment Assistance Provided

Incheon City announced on the 6th that it will implement a debt adjustment support project for small business owners and financially vulnerable groups struggling with excessive debt.

The project focuses on resolving the issue of difficulty in utilizing various debtor relief systems such as bankruptcy, rehabilitation, and workout due to complex conditions.

The city plans to provide optimal solutions by comprehensively considering factors such as occupation, income, assets, repayment methods, and repayment periods, and support debt adjustment costs including bankruptcy trustee and lawyer appointment fees, stamp duty, and delivery fees to help prompt economic recovery.

Since 2018, the city has provided debt resolution counseling to 17,141 small business owners and financially vulnerable individuals, and among them, 2,583 received economic recovery support through debt adjustment systems.

Among the debt adjustments, personal bankruptcy accounted for 96%, while personal rehabilitation, workout, and others each accounted for 5%. By age group, those in their 50s made up 31%, those in their 60s 33%, and those over 70 13%, with the age group over 50 accounting for 77% of the total.

Regarding the causes of debt, small business failure accounted for the largest portion at 61%, followed by living expenses (17%), guarantees (13%), fraud (6%), and others (3%).

An official from Incheon City stated, "We will help overcome economic difficulties through active debt counseling and debt adjustment support for financially marginalized groups such as small business owners facing consumption contraction and sales decline."

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