FSC to Ease New Start Fund Industry Restriction Criteria Starting Tomorrow

The third on-site meeting for small business owners held in Busan
Some feedback immediately reflected
New Start Fund system improvements to be implemented in September

The Financial Services Commission held its third on-site meeting in Busan to closely identify the challenges faced by small business owners and self-employed individuals regarding debt restructuring. Measures that can be immediately improved, such as easing the industry restriction criteria and improving the New Start Fund system, will be implemented starting tomorrow.

On the morning of August 7, at the headquarters of Korea Asset Management Corporation (BIFC) in Busan, the Financial Services Commission announced that it had made these decisions during the 'Regional Tour, On-site Relay Meeting.' This New Start Fund relay meeting is being held in accordance with President Lee Jaemyung's directive to listen to and review the voices from the field to resolve the debt problems of small business owners, following the town hall meeting in the Chungcheong region on July 4.

During the meeting, various opinions were raised, including: ▲ easing the burden of debt repayment, ▲ speeding up the debt restructuring agreement process, ▲ providing incentives for faithful repayment, and ▲ improving convenience for applicants.

In particular, it was pointed out that small business owners who operate multiple businesses simultaneously are excluded from the New Start Fund support if they are involved in a restricted industry (such as real estate leasing or brokerage), even if that business is not their main source of income.

In response, the Financial Services Commission decided to ease the industry restriction criteria starting tomorrow so that debt restructuring support can be provided as long as the main business is not in a restricted industry. In addition, if, during the use of the New Start Fund, a guaranteed debt is converted to an unsecured debt through subrogation, the relevant debt will be exempted from the limit criteria.

For current support systems, such as additional applications for debt restructuring following the expansion of partner institutions and re-adjustment (purchase type) when a vulnerable borrower status is changed after application, immediate guidance will be provided to users via DM and other means. The Commission also plans to repeatedly encourage partner institutions to prevent breaches of agreement, especially in cases where cooperation was lacking, such as when auctions proceeded even after a debt restructuring application.

For matters requiring amendment of agreements, such as expanding support for low-income and vulnerable groups and extending the grace period (within the maximum limit), these will be reflected in the agreement amendments currently being promoted in accordance with the supplementary budget and are scheduled to be implemented in September.

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