The South Korean government launched its new long-term debt relief program, the Bad Bank (New Leap Fund), on Wednesday, with 840 billion won ($599 million) in funding. Through this initiative, about 1.13 million debtors are expected to have a total of 16.4 trillion won in debt written off.
The Financial Services Commission and the Korea Asset Management Corp (KAMCO) held the official launch ceremony for the fund in Seoul.
In his congratulatory speech, FSC Chairman Lee Eog-weon noted that the fund is not merely about debt cancellation.
“It is about supporting the recovery of those who have lost repayment capacity, thereby restoring a virtuous cycle in our…