▲ The presidential office in Seoul (Yonhap)

presidential office-loans

Presidential office mulls 'credit pardons' for small biz owners

SEOUL, Jan. 8 (Yonhap) -- The presidential office is considering deleting records of overdue loan repayments for small business owners and vulnerable groups whose payments were delayed due to the impact of the COVID-19 pandemic, an official said Monday.

The "credit pardons" will likely be granted ahead of the Lunar New Year holiday, which this year falls on Feb. 10, as the government considers various measures to improve people's livelihoods and revive the economy.

"In the event loan repayments were delayed due to the impact of COVID-19, we're looking into deleting the records," the presidential official told Yonhap News Agency. "We're discussing it with the financial circles, and if we can complete the discussions, we could get it done quickly even before Lunar New Year's Day."

Typically, the Korea Credit Information Services keeps a record of debts that are overdue by three or more months, and shares it with financial organizations and credit ratings agencies, which can limit individuals' ability to take out future loans or use credit cards even after they have repaid their loans.

The government is also considering deleting records of light disciplinary action against public servants in the event it was handed down for minor mistakes, as part of efforts to boost their morale, according to the official.

The official stressed, however, that such measures should not be confused with presidential amnesties granted to senior public servants or politicians serving prison sentences, saying "nothing has been decided yet" on such pardons.

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