The Fresh Start Fund, created to help small business owners and vulnerable borrowers get back on their feet, has purchased debt approaching ₩6.6 trillion (approximately $4.9 billion), yet has recovered only 3.4% of that amount. With roughly one in eleven borrowers who received debt restructuring falling back into delinquency, questions are mounting over the program’s effectiveness.
According to data obtained by Representative Park Sung-hoon of the ruling People Power Party, who serves on the National Assembly’s Legislation and Judiciary Committee, from the Korea Asset Management Corporation (KAMCO), the Fresh Start Fund’s debt purchase commitments totaled ₩6.5931 trillion (approximately $4.9 billion) as of end-June this year, while…