Starting from the 30th, basic livelihood recipients and severely disabled individuals who have been in arrears on debts of 5 million won or less for over a year will have their principal amount fully waived if they are unable to pay after a grace period of one year.
On the 29th, the Financial Services Commission noted that as a follow-up to the 'customized financial support plan for the underprivileged and self-employed,' it will strengthen personalized debt adjustment support for vulnerable groups by the Credit Recovery Commission. This aims to give those suffering from long-term collections a chance to recover.
Those who are basic livelihood recipients, severely disabled, or over 70 years old and have been in arrears for 30 days or less will receive a maximum principal reduction of 15%. Previously, interest rate reductions were mainly provided to short-term arrears.
Young individuals under 34 who have been in arrears on debts for over 90 days and are utilizing the personal workout program of the Credit Recovery Commission will see the debt reduction rate increase from a maximum of 15% to 20% if they repay diligently for over a year and pay off the debt in a lump sum.
The incentives for debtors who successfully find employment after completing employment support programs while utilizing the debt adjustment services of the Credit Recovery Commission will also be enhanced. Additionally, it has been decided to extend the temporarily operated rapid debt adjustment special cases and pre-debt adjustment special cases, which are currently in operation until the end of this year, for another year until the end of next year.