South Korea: 16 debtors caught concealing assets in New Start Fund

Sixteen individuals have had their debt relief agreements canceled under the New Start Fund after being caught concealing assets. According to data from the Korea Asset Management Corporation (KAMCO) provided to lawmaker Park Seong-hun, these debtors concealed various assets, including real estate, land compensation, lease deposits, and movable property.

The total principal debt involved was approximately 1.65 billion won, with the canceled debt reductions totaling over 1.05 billion won. Some individuals reportedly owned real estate valued between 400 million and 700 million won while applying for relief intended for struggling small business owners and self-employed individuals.

KAMCO has completed the cancellation of the agreements and is currently pursuing legal procedures, including provisional seizures and compulsory execution, to recover the funds. While the fund previously relied on limited information, a recent amendment to the Credit Information Act has expanded the ability to verify assets such as gifts, virtual assets, and unlisted stocks.