Support for Distressed Debt Reduction and Installment Repayment... KOSME Launches Debt Adjustment Campaign

Held Six Times Annually Through the End of November

The Korea SMEs and Startups Agency (KOSME) announced on the 10th that it will run a "Debt Adjustment Campaign to Expand Inclusive Finance" a total of six times through November 30, to support the rehabilitation of distressed debtors.

This campaign targets distressed debtors whose KOSME loans have been in long-term arrears and whose loan agreements have been terminated, focusing on borrowers who have closed their businesses but are willing to repay. It will support them through measures such as debt reduction, new installment repayment agreements, and the removal of delinquency records upon partial repayment.

Distressed debts can be newly rescheduled for installment repayment for up to five years. Socially vulnerable groups and debtors who are willing to make a lump-sum repayment of their loans will be offered preferential benefits with a reduction rate of up to 70%.

Kim Ilho, Director of Corporate Finance at KOSME, said, "This campaign was launched to provide a chance for recovery by adjusting distressed debtors' repayment amounts and periods, and to expand inclusive finance that strengthens the financial safety net," adding, "We will actively support business owners who are struggling to repay due to management difficulties by easing their debt burden and helping them to recover quickly."

The campaign is conducted bimonthly throughout the year (January, March, May, July, September, and November). Debt adjustment consultations can be applied for non-face-to-face by accessing the KOSME website and using 'My Civil Complaints' in My Page.

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