Government Extends Application Period for COVID-19 Personal Delinquent Debt Purchase Fund by Six Months

The Financial Services Commission announced on June 30 that it will extend the application period for the 'Personal Delinquent Debt Purchase Fund,' which was established to support the recovery of individuals with overdue debts caused by the impact of COVID-19, by an additional six months until the second half of this year.

The Commission explained that it took into account the increasing demand for debt restructuring among delinquent debtors, given the continued high interest rates and high inflation, as well as the delayed recovery of domestic demand.

The Personal Delinquent Debt Purchase Fund, which was introduced in June 2020, has purchased approximately 164,000 cases of personal delinquent debt totaling 1.037 trillion won as of the end of last month, thereby alleviating the burden of overdue payments for debtors.

An official from the Financial Services Commission emphasized, "We will continue to devise necessary policy measures to reduce the burden of overdue payments for vulnerable individual debtors and to support their return to normal economic activity."

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