The Financial Services Commission said Thursday that a revision to the Credit Information Use and Protection Act passed the National Assembly’s plenary session the same day.
The key change allows debt restructuring bodies to verify a debtor’s holdings of deposits, savings products and securities, as well as virtual assets, when assessing repayment capacity. Reviews previously relied mainly on real estate and tax information, which critics said left room for hiding assets.
Under the revision, the agencies may obtain necessary financial and property information without a debtor’s prior consent, within a limited scope. Debtors must be notified individually that their information was provided and will be able to check the inquiry.
The measure applies to government debt restructuring programs such as the Sae Do-yak Fund and the Sae Chulbal Fund. These entities buy the claims of long-term delinquent borrowers and provide support such as debt write-offs or reductions in principal and interest.
The FSC said the change will make repayment-capacity reviews more precise, basing decisions on actual ability to repay rather than debt size alone, and easing fairness concerns for borrowers who repay in good faith.
It also said the revision will allow full-scale debt adjustment procedures for cases among the Sae Do-yak Fund’s holdings that require repayment-capacity screening, which is expected to speed support for long-term delinquent borrowers seeking to get back on their feet.
The revision is set to take effect three months after promulgation. The FSC said it will also update related subordinate regulations, including enforcement decrees.
* This article has been translated by AI.
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