The New Leap Fund has canceled 1.5968 trillion won in long-term delinquent debt held by 183,000 socially vulnerable borrowers. The Financial Services Commission said the fourth cancellation took place on October 2, covering debts acquired through the fund’s first six purchasing rounds. The action includes exempt-review accounts held by basic livelihood security recipients, disability pension recipients and veterans, as well as accounts for which enforcement is impossible, statutes of limitation have expired, or bankruptcy and discharge have been confirmed.
The canceled amount represents 13.6% of the 11.7378 trillion won in long-term delinquent debt purchased in rounds one through six. Across the first four cancellation rounds, the fund has reported cancellations totaling 3.8551 trillion won and 452,000 borrowers. The commission noted that borrower counts can overlap between rounds, with the unduplicated figure for canceled borrowers across the rounds listed as 381,000.
The fourth-round total includes 663.8 billion won for exempt-review accounts, 830.6 billion won for accounts with no enforceable rights or similar conditions, and 214.9 billion won for debts with completed limitation periods or confirmed bankruptcy and discharge. The commission said the categories are counted after removing overlaps among cancellation reasons.
Recipients are expected to receive text-message notices from mid-October. They can also check their status through the New Leap Fund website, its customer center at 1660-0705, or one of 12 counseling centers. Borrowers whose debt has been canceled may receive help with releasing legal measures such as bank-account seizures and related costs, while additional financial, employment and welfare support will be offered through relevant counseling channels. The fund plans to continue quarterly cancellations and conduct repayment-capacity reviews under the amended Credit Information Act, with further cancellations planned in the fourth quarter for borrowers found unable to repay.