The Korea Technology Finance Corporation (Kibo) cleared 722.8 billion won ($507 million) in non-performing loans through the end of September, expanding support for entrepreneurs seeking to rebuild after business failure. It plans to clear a record amount by year-end.
Kibo said on the 14th that it is expanding inclusive finance aimed at helping entrepreneurs struggling with business failure restore their credit and start again. As of the end of September, the total of 722.8 billion won consisted of 592.3 billion won in debt write-offs, 105.4 billion won in debt sales and 25.1 billion won in debt restructuring. The agency plans to raise its non-performing loan cleanup to a record 1.5 trillion won by the end of the year.
Funding for second attempts is also being increased. Kibo will provide 50 billion won in restart support guarantees this year to entrepreneurs with technological capability and the determination to try again. That is 5.7 billion won more than a year earlier and the largest amount on record. The aim is to help entrepreneurs apply the technology and experience they built up before their businesses failed to new ventures. Alongside financial support, the agency also offers non-financial assistance such as specialized training, technology and management consulting, and publicity for successful comeback cases.
"Making sure that debt burdens from business failure do not become an obstacle to trying again is an important role of inclusive finance," Kibo Chairman Kwon Hyung-taek said. "Kibo will continue to help entrepreneurs with technology and experience restore their credit, and will steadily expand restart support to back new challenges."