KOTEC to Resolve 1.5 Trillion Won in Nonperforming Loans This Year, Plans 50 Billion Won in Restart Support Guarantees

Strengthening inclusive finance by expanding nonperforming loan resolution and restart support

Korea Technology Finance Corporation said on October 14 that it plans to increase the amount of nonperforming loans it resolves to a record 1.5 trillion won by the end of this year.

KOTEC supports entrepreneurs whose businesses have failed by easing their debt burdens and helping them return to normal economic activity. It does so by writing off long-term uncollectible loans, selling nonperforming loans, and arranging debt restructuring. As of the end of September this year, it had resolved a total of 722.8 billion won in nonperforming loans, including 592.3 billion won in write-offs, 105.4 billion won in loan sales, and 25.1 billion won in debt restructuring.

Korea Technology Finance Corporation Headquarters

KOTEC is also expanding financial support for entrepreneurs seeking a fresh start. It plans to provide a record 50 billion won in restart support guarantees this year, 5.7 billion won more than last year, to entrepreneurs whose businesses have failed and who have strong technological capabilities and a determination to try again. The guarantees will help entrepreneurs draw on the technology and experience they have accumulated to pursue new business ventures, even after a business failure.

Kwon Hyungtaek, chairman of KOTEC, said, "An important role of inclusive finance is to ensure that the debt burden resulting from a business failure does not become an obstacle to trying again." He added, "KOTEC will continue to help entrepreneurs whose businesses have failed rebuild their credit and expand support for their recovery, backing them as they take on new challenges."

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