The Financial Services Commission said on the 29th that the New Leap Fund of Korea Asset Management Corporation (KAMCO) purchased long-term arrears claims held by NongHyup Asset Management, mutual finance institutions (Korean Federation of Community Credit Cooperatives (KFCC)·National Federation of Fisheries Cooperatives·National Credit Union Federation·National Forestry Cooperative Federation), lend companies, and public institutions.
The claims eligible for this fifth round of purchases are unsecured claims on individuals (including sole proprietors) with arrears of seven years or longer and amounts of 50 million won or less. The total scale is about 960.2 billion won held by 116,000 people. Collection will be halted immediately after purchase, and debts of socially vulnerable groups, such as basic livelihood security recipients, among the purchased claims will be written off without a separate repayment ability review.
The New Leap Fund has secured about 9.1 trillion won in long-term arrears claims through the first to fifth rounds of purchases, with about 750,000 beneficiaries (including duplicates). The New Leap Fund plans to purchase, by late June, long-term arrears claims held by Evergreen No. 1 Special Purpose Securitization Company (hereinafter "Evergreen"), Korea Federation of Credit Guarantee Foundations, NongHyup, and lend companies.
In addition, the Financial Services Commission (FSC) said that if a comprehensive review of companies holding long-term arrears claims in a securitization company format similar to Evergreen confirms that they hold claims eligible for the New Leap Fund, it plans to purchase the eligible claims as soon as possible.