The Korea Technology Finance Corporation (Korea Technology Finance Corporation, Chairman Kim Jong-ho, hereinafter referred to as “KIBO”) announced on Wednesday, the 22nd, that it will implement the “Strengthening Plan for Supporting the Rehabilitation of Honest Debtors” to revitalize credit recovery and rehabilitation support for the financially vulnerable.
This measure was prepared in response to the new administration's policy of strengthening inclusive finance, to reduce the debt burden on financially vulnerable groups such as small business owners and the self-employed, and to institutionally support the rapid credit recovery of debtors who faithfully repay their loans.
The main contents are ▲Expansion of the target of support for the New Start Fund and strengthening of tax reduction benefits for the vulnerable class ▲Reorganization of long-term and small-sum debts and customized debt adjustment through the New Leap Forward Fund ▲Expansion of the incineration of uncollectible debts such as completion of the statute of limitations ▲Expansion of incentives for honest debt repayers ▲Activation of financial support for companies with excellent technologies that are trying again.
In particular, KIBO plans to support debt adjustment for small business owners and long-term and small-amount delinquent borrowers through the New Start Fund and New Leap Forward Fund, and to burn uncollectible debts worth over KRW 700 billion, the largest amount ever, within the year to support the normalization of financial transactions for debtors who have suffered disadvantages due to past delinquency records.
In addition, KIBO plans to pursue tangible support for recovery on the ground, such as raising the principal reduction rate for debtors who are faithfully repaying their debts in installments and easing the decision-making authority for companies with excellent technologies that are trying again.
Kim Jong-ho, Chairman of the Korea Development Bank (KDB), said, “Through this measure, we have established an institutional foundation to help debtors with the will to repay get back on their feet,” and added, “KDB will continue to do its utmost as a policy finance institution to support the rapid recovery and leap forward of the financially vulnerable and to realize inclusive finance.”
- See more related articles
You must be logged in to post a comment.