Eun Seong-su Holds Breakfast Meeting with Financial Association Heads to Discuss Personal Credit Recovery Measures

[Asia Economy Reporter Oh Hyung-gil] Eun Sung-soo, Chairman of the Financial Services Commission, will hold a private breakfast meeting on the 11th with heads of financial sector associations including the Korea Federation of Banks, the Credit Finance Association, the Life Insurance Association, the General Insurance Association, and the Korea Federation of Savings Banks.

According to the financial sector on the 11th, the attendees are expected to discuss a kind of 'credit pardon' plan called 'Personal Credit Recovery Support' for debtors who temporarily delayed loan payments but have since repaid them following the COVID-19 crisis.

The core of the plan is that financial institutions will not share the delinquency history of those who inevitably delayed loan payments but have repaid them.

Under the current system, even a brief delinquency is shared among financial institutions for a certain period, but considering economic conditions such as COVID-19, the intention is to prevent delinquency records from being effectively recorded to avoid credit rating downgrades.

Specific criteria are under discussion, and there is a possibility that credit recovery will be uniformly applied to those who delayed and repaid loans within a certain period. Currently, the government and financial sector are reviewing a plan to set a specific period and select eligible individuals by examining delinquency and repayment records within that timeframe.

To smoothly implement this personal credit recovery support plan, on the 12th, the financial sector associations and the Credit Information Service, which manages the system, are scheduled to sign a related Memorandum of Understanding (MOU).

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