Only about four of the 15 largest firms that buy and collect distressed personal debt in South Korea have joined a government relief fund designed to help long-overdue borrowers, according to financial industry sources, even as authorities press the sector to take part.
The government has rolled out incentives, including permission to purchase pandemic-era delinquent personal loans, but the industry says the low prices the fund pays and the pressure to sell large volumes of debt leave little reason to participate.
Among the top 15 firms that hold sizable amounts…