Lee administration pushes for 'bad bank' to aid small businesses
Discussions on establishing a "bad bank" to relieve debt burdens for vulnerable groups, including small business owners, are gaining momentum with the launch of the Lee Jae-myung administration, according to government officials and market experts Wednesday. Financial authorities have already begun identifying the scale of long-term, small-scale delinquent loans. Additional details, such as the amount of debt to be acquired and the target beneficiaries, are expected to be outlined soon. During his campaign, Lee repeatedly pledged to pursue debt relief and restructuring for small business owners hit hard by the COVID-19 pandemic. "Substantial debt forgiveness, not just restructuring, is needed," Lee said in a televised debate during the presidential race. At the time, he pointed out that while other countries had absorbed the cost of the pandemic through increased government spending, Korea's approach of offering loans only led to a heavier debt burden for its people. Indeed, pandemic-related debt remains a significant burden for many small business owners. Since 2020, the government and fi
