New Leap Fund Incinerates 1.6 Trillion Won in Long-Term Delinquent Debt

The New Leap Fund announced on October 2 that it has incinerated an additional 1.6 trillion won in long-term delinquent debt for vulnerable social groups.

The debt incinerated this time is part of the 11.7 trillion won (approximately 95,700 individuals) in long-term delinquent debt acquired through the fund's first to sixth rounds of purchases, totaling 1.6 trillion won (about 183,000 individuals).

The incinerated debts include those from recipients of basic living allowances, disability pensions, and veterans' benefits, as well as debts that cannot be enforced, debts that have reached the statute of limitations, and confirmed bankruptcy and discharge debts.

Individuals eligible for debt incineration will receive notifications via text message (SMS) starting mid-October. Information on whether debts have been incinerated can also be confirmed through the New Leap Fund's website, customer service center, and 12 counseling centers nationwide.

With this fourth round of incineration, the total amount of debt incinerated by the New Leap Fund has increased to 3.8551 trillion won, benefiting a total of 452,000 debtors. This represents 32.8% of the debts acquired in the first to sixth rounds, and 47.2% based on the number of supported debtors.

The amounts incinerated in each round are as follows: 1st round 1.1305 trillion won, 2nd round 628.6 billion won, 3rd round 499.2 billion won, and 4th round 1.5968 trillion won.

Among the individuals eligible for the fourth round of incineration, those aged 50 and over accounted for 90.7% of the total, with the highest proportion being in their 60s. In terms of the amount incinerated, over 87.1% was for debts of 20 million won or less, with the largest share being for debts of 10 million won or less.

Approximately 88.6% of all individuals eligible for incineration have been in delinquency for over 10 years, with the average amount incinerated per debtor calculated at 8.71 million won.

The New Leap Fund plans to continue incinerating long-term delinquent debts and debts that have reached the statute of limitations for vulnerable social groups on a quarterly basis.