The amount of tax exemption through personal workouts has nearly doubled in the past five years. Simultaneously occurring, the government announced in June that it would expand the amount of debt relief owed by vulnerable groups by up to 90%, which appears to be growing controversy over ‘moral hazard’. It is pointed out that excessive principal reduction is a problem because it can encourage moral hazard and cause reverse discrimination against faithful patients.
According to the status of principal reduction through personal debt adjustment submitted by the People Power Party lawmaker Kim Sang-hoon’s office from the Credit recovery Committee on the 26th, the amount of reduction through personal workouts is △ KRW 1.0592 trillion in 2020 △ KRW 1.1777 trillion in 2021 △ KRW 1.2659 trillion in 2022 △ KRW 1.414 trillion in 2023 △It continued to increase, recording 1.6713 trillion won in 2024.
Personal Workout is a credit recovery support system in which the government supports debt repayment when credit card or loan payments are overdue for more than three months. If you are confirmed as eligible for debt restructuring, interest and principal will be reduced. Last year, the number of applicants for personal workouts…