Nearly 30,000 South Korean borrowers who previously received debt restructuring have applied for relief again this year, as a prolonged economic downturn leaves many unable to honor repayment agreements or forces them to seek assistance for newly accumulated debt.
According to data obtained by Rep. Lee Jong-wook of the ruling People Power Party from the Credit Counseling and Recovery Service (CCRS), repeat debt restructuring applicants totaled 27,864 in the January-August period, equivalent to 82.6% of last year’s full-year figure of 33,718. In just eight months, the number has already surpassed 80% of the previous year’s total.
Under CCRS rules, borrowers whose restructuring agreements lapse—such as by missing four or more scheduled…