As bankruptcy and rehabilitation applications in Busan exceed 20,000 annually, the city is reaching out to small business owners and citizens facing debt issues.
The city plans to operate a one-stop support system for 100 days until December, providing services from consultation to application, financial assistance, and post-management.
On the morning of August 19, Busan City held a signing ceremony for the 'One-Stop Project for Reviving Livelihoods' at the city hall's international reception room, marking the launch of the 'Hope Counseling Bus.' This initiative is a key part of the city's emergency measures worth approximately 1.3783 trillion won, announced on July 1, and is also a promise made by Busan Mayor Park Je-soo.
The agreement involves eight organizations, including Busan City, the Busan Bankruptcy Court, BNK Busan Bank, the Korea Legal Aid Corporation, the Credit Recovery Commission, the Korea Asset Management Corporation, the Busan Bar Association, and the Busan Local Bar Association. Following the signing ceremony, the first departure of the Hope Counseling Bus took place at the back entrance of city hall.
The initiative is driven by the sharp increase in local bankruptcy and rehabilitation demands. The number of applications in Busan rose from 8,263 in 2022 to 20,242 in 2025, marking a 2.4-fold increase in just three years.
Debt burdens among small business owners are also seen as a barrier to recovery. According to the city, 68.5% of small business owners who decided to close their businesses are in debt, with an average debt amounting to 85.31 million won. The most significant challenge cited during the closure process was 'repayment of loans,' reported by 45.5% of respondents, with the average time taken to close a business being eight months.
The city aims to directly support small business owners and citizens who are unable to utilize debt adjustment or bankruptcy and rehabilitation systems due to complex procedures and financial issues.
Two buses, one large and one small, will be deployed. They will regularly visit key locations in four regions: the old downtown (Jayu Peace Market and Busan Station), central Busan (Bujeon Station and Busan National University area), eastern Busan (Kyungsung University area), and western Busan (Industrial Distribution Complex and Gupo Market), making 2-3 stops each. However, actual operations are expected to be more frequent.
Han Min-jeong, head of the city's Small Business Support Division, stated, "We plan to operate daily from Monday to Friday for 100 days, excluding weekends. While the main regions are set, we are continuously expanding additional stops through consultations with district offices and local merchant associations."
The size of the vehicles will also be adjusted based on local conditions. Smaller buses will be used in alleyways where larger vehicles cannot access, while larger buses will be stationed in areas with high demand for consultations. Areas with easy access for the general public, such as near Busan Station, will also be included. On the first day, the bus was stationed in the Buk-gu area.
Staff from the Busan Credit Guarantee Foundation and the Credit Recovery Commission will be present on-site, along with employees from BNK Busan Bank. Depending on the consultation needs, specialized personnel such as legal advisors will also be connected.
The core of the Hope Counseling Bus is not to handle all legal procedures on-site but to assess individual debt situations and connect them with appropriate solutions at specialized institutions. The initial consultation will determine whether debt adjustment is feasible or if bankruptcy and rehabilitation procedures are necessary. If in-depth consultations are required, appointments will be made with relevant institutions like the Credit Recovery Commission, and legal support will be arranged with lawyers or legal advisors.
Han added, "The bus will provide basic consultations to help determine whether debt adjustment or bankruptcy and rehabilitation is appropriate, and we will guide individuals accordingly. For in-depth consultations requiring personal information verification, appointments will be made with the relevant institutions, and connections will be made with lawyers or legal advisors as needed."
Roles among the participating organizations have also been defined. The Busan Bankruptcy Court will review and support the swift processing of bankruptcy and rehabilitation procedures, while the Korea Legal Aid Corporation and the Credit Recovery Commission will assist with related consultations and application processes.
The Korea Asset Management Corporation will connect debt adjustment programs like the New Start Fund, and BNK Busan Bank will support the operation of the mobile counseling bus. The Busan Bar Association and the Busan Local Bar Association will provide in-depth legal consultations and legal services necessary for bankruptcy and rehabilitation applications. To reduce the number of small business owners who miss out on support due to lack of information, the city has also conducted pre-notifications for users of the Busan Credit Guarantee Foundation.
The city plans to support costs incurred during the bankruptcy and rehabilitation application process, including attorney fees, document issuance fees, delivery fees, and notary fees, up to a maximum of 1 million won per person. The goal is to support over 200 cases of the one-stop service by December, with cost support linked to 100 of those cases. Subsequent support, including policy funding connections, financial education, and business closure support, will continue until December.
However, the funding for cost support has not yet been finalized. The total project cost is 400 million won, with 200 million won coming from private collaboration and the actual city budget amounting to 200 million won. The private collaboration portion will be filled by in-kind support from BNK Busan Bank and shared consultation costs from legal advisor organizations. The city’s 200 million won is included in the supplementary budget proposal submitted to the city council, which is set for final approval on September 11.
Should the budget be reduced during the supplementary budget review process, the project structure may also be adjusted. While the 200 cases of consultation and one-stop service can proceed without separate funding, the scale of cost support for post-application stages, such as document preparation fees, will depend on budget allocation.
This one-stop counseling service for bankruptcy and rehabilitation using buses is a first for the city. The city stated that it could not find similar cases from other local governments during the project preparation process.
Han emphasized, "Many people hesitate to approach bankruptcy due to the negative connotation of the term, but often debt adjustment alone can resolve their issues. I hope this provides an opportunity for small business owners to overcome their crises and reduces the number of individuals who miss out on support due to lack of information." She added, "While this initiative primarily targets small business support, it also includes the general public this time."
Mayor Park Je-soo stated, "We will ensure that no citizens or small business owners, who are pressed by their livelihoods and burdened by complex procedures and costs, miss out on essential support for bankruptcy, rehabilitation, and debt adjustment. We will establish a comprehensive safety net that provides direct consultations, applications, cost support, and post-management for those in need."
* This article has been translated by AI.
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