Loans · Finance

New Start Fund (Debt Adjustment for Small Business Owners and the Self-Employed, 새출발기금): How to Apply, Amount & Eligibility (2026)

Up to 90% principal reduction for distressed or at-risk borrowers (typically 30-80%) · installment repayment of up to 10-20 years

This page is a translation of the Korean original and is for reference only. The official Korean guidance is the authoritative source for amounts and conditions, so be sure to confirm on the official website before applying. View Korean original (한국어)

Benefit
Eligible: small business owners and self-employed persons who ran a business between 2020.4 and 2025.6 (including closed businesses; speculative industries and closed corporations excluded) who are distressed (overdue 90 days or more) or at risk of distress. Reduction of 30-80% of the net unsecured distressed debt (up to 90% for low-income and vulnerable borrowers); repayment up to 10-20 years, grace period up to 1-3 years. With the end-June 2026 reform, the lower limit is 30% for those with high repayment ability.
Who is eligible
Distressed or at-risk borrowers among small business owners and self-employed persons who ran a business between 2020.4 and 2025.6 (excluded if income and asset review shows repayment ability)
When to apply
Apply anytime · application deadline 2026.12.31 (announced by the Financial Services Commission in 2024.9) — reports of a 2027 extension need official confirmation
How to apply
New Start Fund website, call center 1660-1378 (KAMCO, 캠코), or visit a SEMAS New Start Support Center (78 nationwide) for consultation
Important notes
The application deadline may be near at year-end — confirm with KAMCO whether it is extended. The agreement is terminated if false asset reporting or fraudulent acts are discovered.
Note
Submission of virtual asset holdings was made mandatory in 2026.1 and of unlisted stock holdings in 2026.5; after the Credit Information Act took effect on 8.13, bulk asset checks and investigations of fraudulent acts are strengthened. Debt collection stops from the day after applying (reform of 2024.9). Additional early-repayment reduction for faithful repayment.
Go to the official guide →

Based on official sources as of 2026년 10월. Amounts and requirements may change, so please confirm with the official guide before applying.

Frequently asked questions

New Start Fund (Debt Adjustment for Small Business Owners and the Self-Employed, 새출발기금): who can receive it?

Distressed or at-risk borrowers among small business owners and self-employed persons who ran a business between 2020.4 and 2025.6 (excluded if income and asset review shows repayment ability)

New Start Fund (Debt Adjustment for Small Business Owners and the Self-Employed, 새출발기금): how do I apply?

New Start Fund website, call center 1660-1378 (KAMCO, 캠코), or visit a SEMAS New Start Support Center (78 nationwide) for consultation

New Start Fund (Debt Adjustment for Small Business Owners and the Self-Employed, 새출발기금): how much will I receive?

Eligible: small business owners and self-employed persons who ran a business between 2020.4 and 2025.6 (including closed businesses; speculative industries and closed corporations excluded) who are distressed (overdue 90 days or more) or at risk of distress. Reduction of 30-80% of the net unsecured distressed debt (up to 90% for low-income and vulnerable borrowers); repayment up to 10-20 years, grace period up to 1-3 years. With the end-June 2026 reform, the lower limit is 30% for those with high repayment ability.

New Start Fund (Debt Adjustment for Small Business Owners and the Self-Employed, 새출발기금): when can I apply?

Apply anytime · application deadline 2026.12.31 (announced by the Financial Services Commission in 2024.9) — reports of a 2027 extension need official confirmation