Seoul, Dec 22 (IANS) The number of people newly-seeking assistance through a debt workout programme here is expected to reach an all-time high this year, government data showed on Sunday, amid the prolonged economic slowdown.
Under the state-managed bailout scheme, the Credit Counseling and Recovery Service (CCRS) collaborates with financial companies to provide individuals on the brink of insolvency a second chance by restructuring their credit obligations and writing off debt when necessary.
A total of 179,310 people applied for the program as of the end of November, according to data provided by the CCRS and submitted to Rep. Lee Jeong-moo of the main opposition Democratic Party. The annual figure is projected to surpass last year’s record high of 184,867 applicants, reports Yonhap news agency.
Notably, the number of self-employed individuals, mostly those running small businesses, seeking to join the program reached 26,267 as of end-November, already exceeding last year’s record of 25,024.
The surge is attributed to ongoing economic challenges, including high inflation and high interest rates, coupled with slower-than-expected domestic demand.
Additionally, corporate bankruptcies have also hit record levels this year.
According to separate data provided by court authorities, the number of corporate bankruptcy cases filed with courts came to 1,745 in the January-November period, surpassing the record high of 1,657 set in 2023.
The number of corporate bankruptcy rulings also rose significantly, with 1,514 cases recorded so far this year, up 16.3 percent from last year’s total of 1,302 cases.
Meanwhile, the delinquency rate on loans held by self-employed individuals, primarily small business owners, in South Korea hit a record high in 2023.
The rate added 0.3 percentage point from a year earlier to reach 0.66 percent last year, according to data compiled by Statistics Korea. Both the delinquency rate and its growth rate marked all-time highs since the agency began compiling relevant data in 2017.
—IANS
na/
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by TodayIndia.news and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of TodayIndia.news We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, TodayIndia.news takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
