Government Considers Wiping Pandemic Debt Records to Aid Small Businesses and Vulnerable Groups
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The government is considering deleting overdue debt records for small business owners and vulnerable people that piled up during the Covid-19 pandemic.
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Negotiations are underway with financial companies, and an agreement could happen before Lunar New Year holidays in early February.
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This measure was initially proposed on Jan 4th during a policy briefing President Yoon Suk Yeol attended.
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People with overdue debt records face challenges getting loans and credit cards, even after settling debts.
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Overdue records over 3 months are stored at the Korea Credit Information Services for up to a year, then shared with financial companies for 5 years.