Korea Inclusive Finance Agency runs comeback campaign through Nov. 27
Repayment period extended to 12 years; subrogation records lifted immediately
Borrowers who have defaulted on Haetsal Loan debt will no longer need to pay the minimum 100,000 won ($76) entry fee upfront when entering an installment repayment agreement — they can now spread that amount across the repayment period. The change applies to loans the Korea Inclusive Finance Agency repaid on borrowers' behalf to financial institutions, and the maximum repayment period will also be extended from 10 years to 12 years.
The Korea Inclusive Finance Agency announced Wednesday it will run a special campaign through Nov. 27 to help Haetsal Loan subrogation debtors get back on their financial feet.
The centerpiece of the campaign is the elimination of the upfront entry fee requirement. Borrowers who sign an installment repayment agreement can spread the minimum 100,000 won entry fee over the full repayment period rather than paying it in advance. The maximum repayment term will also be extended from 10 years to 12 years.
Earlier, the agency ran a similar special campaign in May, cutting the entry fee from 100,000 won to 50,000 won and extending the maximum repayment period to 12 years. The latest campaign goes a step further, allowing borrowers to begin installment repayments without paying any entry fee upfront.
The campaign targets subrogation debtors — those who must repay amounts the agency covered on their behalf to financial institutions after they failed to service their Haetsal Loan principal and interest. However, those already enrolled in court-supervised personal rehabilitation or bankruptcy proceedings, or in a debt-adjustment program through the Credit Counseling and Recovery Service, are excluded.
Once a borrower signs an installment repayment agreement, subrogation records and other credit-assessment information will be lifted immediately, and penalty charges accruing in lieu of interest will be waived for the duration of the repayment period. Existing installment repayment participants who find themselves struggling can also renegotiate the repayment period and amount without canceling their agreement. Applications can be submitted through the inclusive finance call center or the "Seomin Finance Itda" mobile app.
"Even 100,000 won as an entry fee for installment repayment can be a heavy burden for those in financial difficulty," Korea Inclusive Finance Agency President Kim Eun-kyung said. "Through this special campaign, we will support those with the will to make a fresh start so they can ease their repayment burden and return to economic activity as soon as possible."
snsd@heraldcorp.com
