The government plans to readjust or possibly wipe out debts for households stuck in desperate situations.

Finance Minister Kim Dong-yeon on Monday hinted the move will be included in the government’s comprehensive measures to rein in the country's snowballing household debts expected to be announced on Tuesday.

Speaking to related public organizations at a public finance assistance center in central Seoul, Kim acknowledged criticism about possible moral hazards the measure could trigger.

However, he assured the government will carry out the new measures in a way that minimizes such adverse effects.

While emphasizing that they intend to provide heavy debt holders with a second chance, he said the government will also consider giving incentives to those sincerely paying off their arrears.

The minister added the comprehensive measures will be split, with one to keep the national debt under control and the other to target working or vulnerable classes.