The Financial Services Commission said on the 9th that the New Leap Fund additionally wrote off 600 billion won in long-term arrears claims held by 133,000 people in vulnerable groups, including basic livelihood security recipients. The claims written off this time are among the 770 billion won (600,000 people) in long-term arrears claims the New Leap Fund secured through the first to third rounds of purchases, consisting of claims for vulnerable groups exempt from repayment capacity screening and claims effectively difficult to recover.
The New Leap Fund earlier cleared 1.1305 trillion won in claims (67,000 people) through the first round of write-offs last year. Including this second round, the cumulative write-offs amount to 1.7591 trillion won (200,000 people), about 22.8% of all purchased claims.
The New Leap Fund is sequentially purchasing eligible claims from financial companies participating in the agreement and immediately halts collections upon purchase. It then conducts a comprehensive review of the debtor's assets and income to write off debt or carry out debt restructuring.