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>>Stunning audit reveals COVID debt relief aided South Korean borrowers who held substantial cryptocurrency assets.

Stunning audit reveals COVID debt relief aided South Korean borrowers who held substantial cryptocurrency assets.

crypthub

about 22 hours ago

Audit Findings

The Board of Audit and Inspection examined KAMCO’s COVID‑19 debt relief and found 1,944 of 32,703 borrowers could fully repay yet still received forgiveness, totaling 84 billion won. Among those granted large relief (over 30 million won), 269 individuals held more than 10 million won in cryptocurrency at year‑end. These crypto‑holding borrowers obtained 22.5 billion won in principal reductions.

Crypto Holdings Impact

The audit highlighted stark mismatches, such as a borrower who received 120 million won in aid while owning 430 million won in crypto assets. Cryptocurrency, though volatile, represents significant wealth that was not considered in eligibility checks. This oversight allowed financially capable individuals to benefit from public funds intended for the vulnerable.

Implications for Future Programs

The findings expose flaws in screening processes, suggesting that modern asset types must be included in financial assessments. Transparent and robust verification can preserve public trust and ensure relief reaches those truly in need. Regular audits are essential to maintain program integrity and accountability.

Lessons for Governments

Eligibility criteria should evolve to capture digital assets, with real‑time monitoring to prevent misuse. Clear disclosure of relief distribution builds confidence during emergencies. South Korea’s case serves as a cautionary example for designing and overseeing future crisis assistance schemes.