South Korea plans to cancel or restructure overdue pandemic-era debts of self-employed people and small business owners, including claims delinquent for more than three years. The measures were announced on the 28th at an emergency economic headquarters and economic ministers’ meeting chaired by Deputy Prime Minister and Minister of Finance and Economy Koo Yun-cheol, after the Bank of Korea raised its base rate by 0.25 percentage points to 3% the previous day. Individual business loans totaling 358.7 trillion Korean won were provided through banks and policy finance during 2020–2023. Of that amount, 154.7 trillion Korean won remains outstanding, while 6.3 trillion Korean won, or 4.1% of the outstanding balance, has been overdue for more than three months. The government said the support reflects South Korea’s reliance on financial assistance rather than fiscal funds during the pandemic, which left borrowers with substantial repayment burdens. Next year, the proposed New Leap Fund would purchase and cancel debts for borrowers who have lost repayment capacity, while the New Start Fund would reduce principal or extend repayment periods for those able to repay partially. The government will announce the program’s scale and eligible targets within the fourth quarter of this year, subject to passage of the 2025 budget bill. It will also expand incentives for borrowers who have continued repaying, including a 0.3 percentage point preferential rate, a 200 million Korean won credit-limit increase through the Small Enterprise & Market Service, doubled lending under the Industrial Bank of Korea’s Small Business Hope Dream Loan, expanded special guarantee-fee discounts and interest relief for companies undergoing restructuring without delinquency.