The government plans next year to restructure long-overdue unsecured debt owed by small businesses hit during the pandemic. The target is debt held by financial institutions and public agencies that became delinquent before June 2023 and remains unpaid.
Dong-A Ilbo, citing government data, reported that 154.7 trillion won remains outstanding from 358.7 trillion won in personal-business lending supplied from 2020 through 2023. About 6.3 trillion won, or 4.1% of that balance, is at least three months overdue. Relief could help borrowers facing higher rates, but the final terms will determine how the government balances recovery support against concerns that repeated forgiveness rewards prolonged nonpayment.