Finance
Special debt discharge expansion for vulnerable borrowers raises bank burden, moral hazard debate
South Korea\'s financial authorities are drawing attention after launching a special debt discharge scheme that significantly reduces repayment burdens. The cap for support to vulnerable borrowers such as basic livelihood recipients and severely disabled people rises to 50 million won from 15 million won if they repay diligently for a set period. While there is support for helping low-income borrowers restart, concerns are being raised about higher losses for financial firms and potential moral hazard.
