President Lee Jae-myung Cancels Debts: Whose Debts Shrink and by How Much...Saedoyak Fund Conditions and Controversy

Key points in 3 lines

1. The Saedoyak Fund is not a blanket cancellation of all debts but a system that reviews repayment ability and writes off or restructures long-overdue loans.
2. According to the Financial Services Commission, the main eligible targets are unsecured loans of individuals and sole proprietors overdue for seven years or more and amounting to 50 million won or less, and about 2.3 trillion won had been written off as of June 25, 2026.
3. Write-offs require meeting conditions such as household income of 60% of the median or less, and where repayment ability exists, adjustments such as a 30 to 80 percent principal reduction apply, while there is controversy over fairness to those who have repaid diligently.

Written by our reporter · 3-line summary by Koto, The Korean Today's AI assistant · 88 languages ⓘ