Lee debt relief program leaves blind spot on borrowers’ crypto holdings

South Korea’s debt relief program Saedoyak Fund under President Lee Jae-myung’s administration does not review whether borrowers hold virtual assets, meaning debt could be written off even when a borrower has the ability to repay through large crypto holdings, the Financial News reported. The report said criticism is growing because the program has effectively left a gap in screening despite around 270 cases of hidden virtual assets having previously been uncovered under a similar debt relief scheme, the New Start Fund. Instead, the Korea Asset Management Corp. maintains it is conducting follow-up oversight through a fraudulent benefit reporting system. Under that process, if a report is filed with a hidden asset reporting center and concealed assets such as virtual assets are found, authorities can recover the amount of debt that was forgiven or seek damages. Kamco said no cases have yet been confirmed in which additional assets such as virtual assets were found after a borrower’s debt had already been canceled.