The Korea Student Aid Foundation, a state-run institution that operates the student loan program, pursued legal action against 1,078 long-term delinquent borrowers from the start of this year through the end of July. It filed lawsuits and sought provisional attachments and compulsory execution to recover a combined 7.9 billion won. The number of borrowers facing legal action was 2,061 in 2024 and 2,025 in 2025, putting this year’s total on course to remain near previous levels. The actions contrast with government efforts to press private financial firms and state-run financial institutions to write off debt, sell loan portfolios at discounted prices and adopt more inclusive finance after President Lee Jae-myung criticized what he called "cruel finance." Banks completed 21,449 in-house debt restructurings in the first half of this year, 17% above the 18,306 recorded during all of last year, according to the Financial Supervisory Service. The foundation provided 2,762 debt-restructuring measures, including installment repayment agreements, worth 15.7 billion won by the end of July. That compares with 7,430 cases worth 42.2 billion won in 2024 and 8,170 cases worth 50.1 billion won in 2025, leaving this year’s figure at 34% of last year’s annual total despite more than half the year having passed. Industry officials say the foundation, which is outside the Financial Services Commission’s jurisdiction, has been slow to resolve long-term delinquent loans. Such loans have continued to rise: accounts more than seven years past due reached 42,660 by the end of July, up 72% from 2022, while those more than six months overdue reached 159,264. Of 50,101 borrowers more than six months past due at the end of July, 18,993, or 37.9%, were in their 40s or older. Critics say delinquent-loan management should better support vulnerable young adults and prevent student debt from becoming a barrier to entering the workforce. Rep. Lee In-seon said the foundation should strengthen support for borrowers seeking a fresh start because its purpose is to help young people enter society.