The government has decided to write off long-overdue debts for those who are incapable of reimbursement in a bid to support self-employed people.

According to the Finance Ministry and the Financial Services Commission, the government is seeking the move to support small businesses facing difficulties from the minimum wage hike and reduced income.

The government plans to write off liabilities of 480 billion won that are overdue for ten years or more for people who the authorities find do not have the ability to pay back their debts.

The Korea Asset Management Corporation will cancel the debts after purchasing them from public authorities and financial organizations.

The plan will benefit some 35-thousand people.

Separately, the government will also increase one trillion won for a low-interest loan product for small businesses as the fund for the loan has already been exhausted even though it was launched in January.