Minor 'Debt Inheritance Prevention' 「Partial Amendment to the Civil Act」 Passed in the Plenary Session on the 24th

Adults Can File Special Limited Approval Within 3 Months If They Know Parents' Debt Exceeds Inherited Property

Assemblyman Kim Hoe-jae Introduces Bill to Prevent Minors' Debt Inheritance, Passed in Plenary Session View original image

[Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik] The "Partial Amendment to the Civil Act" to stop the "debt inheritance" of minors who unknowingly bear excessive debt due to their parents' debts passed the National Assembly plenary session on the 24th.


On the 24th, the National Assembly held a plenary session and approved the "Partial Amendment to the Civil Act" proposed by Kim Hoe-jae, a member of the Democratic Party of Korea representing Yeosu-si Eul, Jeollanam-do, aimed at preventing minors' "debt inheritance."


The current law implements a limited approval system that allows repayment of the decedent's debts only within the limits of the inherited property.


However, minors often do not fully understand the exact debt situation at the time of inheritance, and the limited approval system is not properly utilized, resulting in them bearing excessive debt as is.


Accordingly, the amendment passed in the plenary session allows minors who, after reaching adulthood, learn that the inherited debt exceeds the inherited property to apply for special limited approval within three months from that day.


In addition, the revised regulations will be applied retroactively to all minors under 19 years of age as of the enforcement date and adults who are not yet aware of the excess inheritance debt.


Representative Kim Hoe-jae said, "I am very pleased that a system has been established to break the 'debt inheritance' for our children," and added, "I will do my best to prepare institutional and policy measures to eliminate unfairness starting from the starting line of life."




Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik hss79@asiae.co.kr


This content was produced with the assistance of AI translation services.

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.

Today’s Briefing