South Korea is extending the state hand to citizens who are forced to pay their debts. With the 'Happiness Fund', these debts will be closed and citizens will have a more comfortable life.
South Korea, 1.6 million citizens in order to alleviate the economic burden of low-income individuals delete the debt.
According to the BBC, the draft will cover those who earn less than $ 910 and have difficulty paying their debts. They need to prove that they can not pay their debt, which is more than 10 years old, and to document their earnings. Ülken's Financial Services Commission stated that citizens who have difficulty paying their debts are prepared to get rid of this burden and make a fresh start. Approximately 6.2 trillion is expected to be paid.
The Happiness Fund was established in 2013 to help the Koreans, who are not in economic good condition, get rid of their debts.
Was one of the most important items in the presidential election campaign of Park Geun-hye, former president of South Korea. It aimed to resolve the economic inequality in the country. The Happiness Fund has helped many people by providing 6.8 trillion in payments since its foundation.
Jasper Kim, chairman of Asia-Pacific Global Research Group, stressed that this latest plan will be a 'good step' for the economically troubled Koreans.
'We can say that Confucius capitalism, which is seen as a protective father figure of the draft state, is a unique state.' He stressed that personal debts are a big problem in South Korea, he added, adding that the draft does not include "those who are too much borrowed if they are directly middle or high income."
The central bank in the country has raised interest rates on Thursday for the first time in the last 6 years. The country's economic situation is expected to improve by 3% this year.
Citizens who want to benefit from this aid fund will be able to apply from February.