The South Korea Financial Services Commission reported that the New Leap Fund completed its fourth write-off of long-delinquent debt, canceling KRW 1.5968 trillion owed by 183,000 vulnerable borrowers. Across four rounds, write-offs now total KRW 3.8551 trillion, or 32.8% of the KRW 11.7 trillion acquired through the fund’s first six purchases. The rounds cover 452,000 borrower records, or 381,000 borrowers after removing overlaps. The latest action covers claims exempt from repayment-capacity reviews for recipients of basic livelihood benefits, disability pensions and specified veterans benefits, as well as unenforceable claims and debts affected by expired limitation periods or finalized bankruptcy and discharge proceedings. About 90.7% of borrowers were at least 50 years old, 87.1% had no more than KRW 20 million written off and 88.6% had been delinquent for at least 10 years. Affected borrowers will be notified from mid-October and may receive support to lift account seizures and other legal measures. The fund will continue quarterly write-offs for eligible vulnerable borrowers and, following the revised Credit Information Act’s entry into force on Aug. 13, 2026, has begun repayment-capacity assessments with further write-offs planned in the fourth quarter for borrowers found unable to repay.
South Korea Financial Services Commission reports KRW 1.6 trillion fourth New Leap Fund debt write-off for 183,000 vulnerable borrowers
The South Korea Financial Services Commission reported that the New Leap Fund wrote off KRW 1.5968 trillion in long-delinquent debt for 183,000 vulnerable borrowers, bringing four-round write-offs to KRW 3.8551 trillion. The fund has begun repayment-capacity reviews under the revised Credit Information Act and plans further write-offs in the fourth quarter for borrowers unable to repay.