The Financial Services Commission announced today (June 30) that the Saedo-yak Fund, a government debt adjustment program, has completed its third write-off of 500 billion won in long-term overdue debt for 69,000 vulnerable individuals.
As with the first and second rounds of write-offs, this batch includes 100 billion won in debt (for 12,000 people) for which the statute of limitations expired after being acquired by the Saedo-yak Fund, in addition to debt held by vulnerable groups exempt from repayment ability assessments and debt that cannot be legally enforced.
The Saedo-yak Fund has secured 9.1 trillion won in long-term overdue debt (for 750,000 people) through its first to fifth rounds of acquisitions. The cumulative write-off amount now stands at 2.2583 trillion won (for 269,000 people), representing 24.8% of all acquired debt.
Debtors who have received debt relief (write-offs) from the Saedo-yak Fund are eligible for various support programs designed to help them achieve economic recovery.
Beneficiaries can receive assistance with the lifting of legal measures such as bank account seizures and related costs. Additionally, those who sign up for the Saedo-yak mobile plan, operated by Korea Post's budget phone service providers, can receive support for their basic monthly communication fees for up to two years.
Following the enforcement of the revised Credit Information Act in August, the fund plans to begin full-scale repayment ability assessments as soon as the data collection system for financial assets and other information is established. It intends to conduct further debt write-offs in the fourth quarter for debtors determined to have no ability to repay.
(Photo: Yonhap News)