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The Korean government is set to spend W700 billion to bail out 720,000 credit delinquents (US$1=W1,007). The move is aimed at reducing the number of delinquent debtors, which is rising at a rapid pace amid soaring oil and commodities prices.
The government will aid debtors by writing off their default interest and allowing them to pay back their debt over a longer period of time. The government will also ban lenders from pressing debtors for repayment in any form between 9 p.m. and 8 a.m.
Controversy over the bailout is expected, however, as it may discourage people from paying back their debts on time.
Arirang News
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