South Koreans filing for a personal bailout program surged 20 percent through May this year, the state-run debt counseling agency said Monday, apparently due to the protracted slump in the economy.

The number of people petitioning to get protection under the program came to 44,172 through May this year, compared to 36,846 tallied over the cited period last year, according to the Credit Counseling & Recovery Service.

The government’s personal bailout program is designed to give people some leeway on overdue interest on loans and have their debts written off when they fulfill debt obligations. People who have a stable income or assets but are hard pressed to pay their debts mostly apply for the rescue program.

Market watchers earlier anticipated the number of people seeking the bailout program will decline down the road as the government’s debt relief program, known as the National Happiness Fund, was anticipated to absorb some of the demands for a financial rescue.

Launched in late-March, the 1.5 trillion-won ($1.29 billion) fund is aimed at helping delinquent borrowers settle their debts by offering a lower interest rate and an extended maturity. An eligible applicant should have less than 100 million won in debts that have been in arrears for more than six months as of February. (Yonhap News)