As of now, 147,000 small business owners and self-employed individuals have entered into debt restructuring agreements through the New Start Fund. Participants at a recent meeting emphasized the need for expanded support for credit recovery and improvements in employment and management following debt restructuring.
On August 22, the Korea Asset Management Corporation (KAMCO) announced that it held a 'New Start Fund Communication Meeting' the previous day at the KAMCO Yangjae Tower in Gangnam, Seoul, attended by customers utilizing the fund and counseling professionals.
During the meeting, attendees shared their experiences and counseling cases following debt restructuring. One beneficiary stated, "Debt restructuring has alleviated my repayment burden, allowing me to successfully re-enter the job market," but added, "Despite my commitment to fulfilling the agreement, my low credit score due to past delinquencies limits my business and employment opportunities," urging for a reduction in the credit recovery period.
Participants suggested that policies supporting management environment improvements and job transitions should accompany debt restructuring. They also noted that the barriers to loans from financial institutions remain high, advocating for an expansion of public financial support for low-income individuals.
Counselors reported an increase in inquiries and demand for management improvement consulting conducted in collaboration with the Small Business Association, recommending an expansion of re-employment support programs linked with relevant organizations.
By the end of July this year, a total of 211,000 individuals had applied for debt restructuring amounting to 33.4 trillion won through the New Start Fund. Of these, 147,000 have signed agreements totaling 13.5 trillion won. The average principal reduction rate is 74%, with an average interest rate reduction of 5.4 percentage points.
KAMCO President Jeong Jeong-hoon stated, "We will reflect the opinions from the field into our program operations to develop support measures that provide tangible assistance to diligent repayers."
* This article has been translated by AI.
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