South Korea's New Start Fund to include crypto in debt relief reviews

The South Korean government is improving its New Start Fund, a debt adjustment program for small business owners and the self-employed, by incorporating virtual assets into its review process, Yonhap News reported. Under the revised system, the debt reduction rate will be adjusted based on an applicant's repayment ability, which now considers their crypto holdings. Previously, the fund primarily verified debtors' income and assets through financial statements submitted by applicants and data accessible via public administrative information networks, a method that struggled to identify such investment assets. To address this, the fund has been utilizing virtual asset balance certificates in its property assessments since January of this year, following consultations with the five major South Korean crypto exchanges with won-denominated markets. Applicants identified as members of these exchanges are now required to submit these certificates directly.