[Invest&Law] Barun Law LLC Compliance Research Group Successfully Concludes Seminar on 'Current Issues and Challenges in NPL Sales Transactions in the Financial Industry'

The Compliance Research Group of Barun Law Firm (Chief Attorneys Jae-pil Park, Dong-hoon Lee, and Young-hee Lee) held a seminar on the 14th at the Barun Building in Daechi-dong, Gangnam-gu, Seoul, under the theme "Current Issues and Challenges in the Sale of Non-Performing Loans (NPLs) in the Financial Industry (Focusing on 2024 Business Cases)" to assess the market situation.

The seminar was organized to discuss the increasing activity in NPL sales within the financial sector, emphasizing the need to protect debtors and strengthen legal regulations. Topics covered in detail included ▲eligibility of buyers ▲regulations for debtor protection ▲the particularities of opposition requirements in NPL sales ▲and the impact of the enforcement of the "Act on the Management of Personal Financial Claims and Protection of Personal Financial Debtors" (hereinafter referred to as the "Personal Debtor Protection Act") along with other important considerations during transactions.

Attorney So-yeon Kim, who presented at the seminar, stated, "Until now, financial supervisory agencies' guidelines or agreements with Korea Asset Management Corporation (KAMCO) have been used to exclude certain claims from sale or restrict procedures related to sales of financial institutions' claims. However, with the Personal Debtor Protection Act scheduled to take effect on the 17th, the sale of some claims and related procedures will be legally restricted."

Attorney Kim continued, "It is necessary to establish internal standards for debt collection and debt transfer, recruit personnel for this purpose, and regularly check compliance with outsourcing collection requirements. The Personal Debtor Protection Act delegates the authority to the Presidential Decree to define the scope of debt finance companies and matters to be included in internal standards for outsourced debt collection. Since only the draft subordinate legislation has been announced so far, attention should be paid to the future legislative process."

Since 2019, Barun Compliance Research Group has been providing customized consulting to help small and medium-sized enterprises actively respond to internal and external risks and various regulations. The group functions as a think tank for ▲analyzing and diagnosing industry and company-specific conditions ▲assessing legal risks ▲and proposing comprehensive solutions and roadmaps. It also promotes collaboration among experts in various fields within the law firm and serves as a bridge connecting affiliated experts with clients.

Ji-in Yoo, Legal Times Reporter

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