Bahk Byong-won, chairman of the Korea Federation of Banks, was tapped to concurrently head a fund for helping restore the credit of long-term delinquents, industry sources said.

The “National Happiness Fund,” scheduled to be formally launched this week, will select the 61-year-old as chairman at a shareholders’ meeting. 

The board will consist of Bahk and other members, who are chairmen of the General Insurance Association of Korea, the Korea Life Insurance Association, the Korea Financial Investment Association and President of the Korea Federation of Savings Banks.

The National Happiness Fund was one of the main election pledges of President Park Geun-hye. With the aim to help reschedule and write off debts for struggling individuals, the fund has been set up with a credit recovery fund created by financial companies who have become its shareholders. It is to be run like a joint-stock company.

The Korea Asset Management Corp. (KAMCO), will be operating the National Happiness Fund. The directors, including Bahk, will work part-time.

Eligible for debt write-off and rescheduling are individuals who are six months or longer overdue on loan payments as of Feb. 28.

Bakh graduated from Kyunggi High School in Seoul and Seoul National University’s department of law. He previously served as vice minister of finance and economy, chairman of Woori Financial Group and the senior secretary for economy under President Lee Myung-bak.

By Chun Sung-woo (swchun@heraldcorp.com)