KOSPI Surges as Government Launches Debt Plan
(MENAFN) South Korea's main stock index surged past the 3,000 mark on Friday, a level not seen in more than three years, following the government’s move to wipe out the debts of small enterprises, as noted by local outlets.
The Korea Composite Stock Price Index (KOSPI), a key market indicator, advanced by 31.84 points, or 1.07 percent, reaching 3,009.58, as reported by a news agency.
This marks the first instance since January 2022 that the KOSPI has crossed the symbolic 3,000-point line.
The rise followed an announcement made the previous day regarding a debt cancellation scheme aimed at small-scale business operators struggling with repayment.
As detailed by a daily publication, liabilities of up to 50 million won (approximately USD36,000) that have been delinquent for over seven years will be entirely written off.
Moreover, businesses impacted by the COVID-19 crisis may qualify to have as much as 90 percent of their loan principal “forgiven.”
To support this measure, the government will dedicate 1.5 trillion won (aboutUSD1.08 billion), aiming to erase around 22.6 trillion won (roughly USD16.3 billion) in total outstanding debt for an estimated 1.23 million individuals, according to the daily.
This initiative is recognized as the most extensive personal debt relief measure in the country’s history.
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