New Leap Fund Forgives Debt for 69,000 Vulnerable Individuals

On June 30, the New Leap Fund announced the third round of debt cancellation for long-term delinquent loans targeting vulnerable social groups.

This round of cancellations involved 500 billion won ($450 million) for 69,000 individuals from a total of 9.1 trillion won ($8.2 billion) in long-term delinquent debts acquired through the first to fifth rounds of purchases, which affected 750,000 people. Similar to the first two rounds, this cancellation included debts from basic livelihood recipients, disability pension recipients, and veterans, which were exempt from review, as well as debts that could not be enforced. Additionally, 100 billion won ($90 million) in debts that had expired since the New Leap Fund's acquisition were also canceled.

Debtors who received debt forgiveness will have access to support programs aimed at helping them regain economic stability. This includes the removal of legal actions such as bank account seizures and financial assistance. Those who enroll in the 'New Leap Rate Plan' offered by a postal service mobile operator can receive support for basic communication fees for up to two years.

The New Leap Fund plans to continue its quarterly debt cancellations for long-term delinquent loans targeting vulnerable groups. Furthermore, following the implementation of the revised Credit Information Act in August, the fund intends to begin assessing repayment capabilities and will aim to cancel additional debts for those deemed unable to repay during the fourth quarter.