Busan Surpasses 20,000 Bankruptcy and Rehabilitation Cases... One-Stop Support from Debt Adjustment to Recovery

"Hope Counseling Bus on the Move" Launched by Eight Agencies


Up to 1 Million Won in Application Support, Plus Post-Management Assistance

The Busan Metropolitan Government has launched direct support initiatives targeting ordinary citizens and small business owners facing debt problems. The number of bankruptcy and rehabilitation filings in the Busan area exceeded 20,000 cases last year.

On August 19, the Busan Metropolitan Government signed a "Livelihood Recovery One-Stop 100-Day Project" partnership agreement with eight organizations, including the Busan Rehabilitation Court, BNK Busan Bank, Korea Legal Aid Corporation, the Credit Counseling and Recovery Service, Korea Asset Management Corporation, the Busan Bar Association, and the Busan Judicial Scriveners Association, at the International Protocol Room of City Hall. At the same time, the city began operating the "Hope Counseling Bus on the Move."

The number of bankruptcy and rehabilitation filings in Busan increased from 8,263 in 2022 to 20,242 in 2025. The debt burden faced by small business owners continues to be a major obstacle to recovery. According to research, 68.5% of small business owners who decided to close their businesses held outstanding debt, with the average debt amounting to 85.31 million won. Moreover, 45.5% identified loan repayment as the biggest difficulty during the closure process.

To lessen the inconvenience of residents and small business owners having to visit multiple agencies for bankruptcy, rehabilitation, or debt restructuring, the city established a comprehensive support system that provides end-to-end assistance from consultation and application to financial aid and post-management.

The two "Hope Counseling Buses on the Move" will travel to major hubs in the central city, mid-Busan, east Busan, and west Busan, providing on-site counseling services. Experts will review individual debt situations, guide citizens toward suitable programs, and, when necessary, provide support for applications, documentation, and coordination with relevant agencies.

Each participating organization has specific roles. The Busan Rehabilitation Court will explore ways to expedite bankruptcy and rehabilitation proceedings. The Korea Legal Aid Corporation and Credit Counseling and Recovery Service will assist with application document preparation and debt adjustment counseling. The Korea Asset Management Corporation will connect participants to debt restructuring programs such as the Restart Fund.

BNK Busan Bank will support the operation of the mobile counseling buses, while the Busan Bar Association and the Busan Judicial Scriveners Association will provide legal advice and services related to bankruptcy and rehabilitation applications.

The city will also offer financial support to alleviate cost burdens. Busan plans to provide up to 1 million won per person to cover out-of-pocket expenses incurred during bankruptcy or rehabilitation filings, such as attorney fees, document issuance costs, service charges, and stamp duties.

By December this year, the city aims to support more than 200 one-stop bankruptcy, rehabilitation, and debt restructuring services. Additional follow-up assistance will include connecting participants to policy-based financing, offering financial education, guiding them through closure support projects, and providing legal, financial, and welfare counseling.

This initiative is one of the key tasks under the "Busan Livelihood 100-Day Emergency Measures," a package worth 1.3783 trillion won announced by the city in July.

Mayor Jeon Jae-soo stated, "We will ensure that no citizen or small business owner is unable to receive the essential support for bankruptcy, rehabilitation, or debt restructuring due to work obligations, complicated procedures, or financial burdens." He added, "We are building a robust livelihood safety net by delivering on-the-spot consultations, application support, financial assistance, and post-management directly to those in need."

Visiting Hope Counseling Bus.

This content was produced with the assistance of AI translation services.