Number of people hoping to reschedule debts reach 190,000

SEOUL, Dec. 2 (Yonhap) -- The number of South Koreans requesting a rescheduling
of outstanding debts reached nearly 190,000 this year, credit counseling agencies
said Wednesday, pointing to the lingering impact of the sluggish economy.
The number of credit delinquents who asked for some relief from interest
repayments or roll overs on the payment of the principal stood at 188,272 as of
the end of November, according to the Credit Counseling & Recovery Service and
state-run debt clearer Korea Asset Management Corp. (KAMCO). If this trend
continues, the number of people asking for debt rescheduling may surpass the
200,000 mark, the two agencies said.
Those who applied for the individual debt workout program reached 86,624 as of
last month, far exceeding 79,144 registered for last year. People who are unable
to repay overdue loans worth less than 500 million won (US$433,388) for more than
three months are entitled to tap the program and ask for some reduction in the
interest payment burden.
The South Korean economy is recovering at a faster-than-expected pace on
improving domestic demand and robust exports. But a still-stagnant job markets
and rising household debt are dealing a heavy blow to low-income families.
sooyeon@yna.co.kr
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