South Korea will aggressively restructure roughly 5 trillion to 6 trillion won (about $4.3 billion) in long-overdue pandemic-era loans to sole proprietors and small business owners, focusing on claims that fell into arrears before June 2023 and remain overdue more than three years. Of about 359 trillion won extended from 2020 to 2023, roughly 155 trillion won, or 43%, is still unpaid, and loans more than three months overdue total about 6.3 trillion won. Announced by Deputy Prime Minister and Finance Minister Koo Yun-cheol, the drive comes about 10 months after the New Leap Fund and sits alongside the Fresh Start Fund, lifting the broader government debt-restructuring portfolio toward roughly 31.5 trillion won when prior vehicles are included. Sole-proprietor delinquency has risen to 2.05% as of end-March, and the package pairs principal relief with stronger rewards for on-time borrowers and expanded policy credit, while economists warn repeated forgiveness risks fairness concerns and moral hazard without deeper demand revival.