The South Korea Financial Services Commission announced that the New Leap Fund has completed its sixth purchase of long-overdue claims, acquiring KRW 2.6146 trillion in debt associated with 236,000 borrowers from 538 entities. Sellers included securitization companies, public institutions, mutual finance providers and money lenders. The transaction completed purchases of eligible claims held by Sangnoksu and KB Star, and brought the fund’s cumulative acquisitions to about KRW 11.7 trillion covering 957,000 borrowers, including duplicates. Collection stops immediately after acquisition. Debt owed by designated socially vulnerable borrowers will be written off without a separate repayment-capacity assessment. Other claims will be assessed from the third quarter of 2026, after amended credit information legislation is scheduled to take effect on Aug. 13. Claims involving repayment capacity comparable to personal bankruptcy will be written off within one year, while borrowers with substantially limited capacity may receive debt restructuring. From August, the fund plans further purchases of remaining eligible long-overdue claims across all financial sectors and public institutions. It will also consider incentives to increase participation among money lenders.
South Korea Financial Services Commission2026-07-31
South Korea Financial Services Commission announces New Leap Fund purchase of KRW 2.61 trillion in long-overdue debt
The South Korea Financial Services Commission announced that the New Leap Fund acquired KRW 2.6146 trillion in long-overdue debt covering 236,000 borrowers. Collection stops immediately, with qualifying vulnerable borrowers receiving write-offs and other claims subject to repayment-capacity assessments or restructuring. Further purchases across financial sectors and public institutions are planned from August.