From April, Debtor Representative Applications Also Available at the Korea Inclusive Finance Agency

Application Form Made Even Simpler
Dedicated Phone Line for Debtor Representative Applications Launched
Text Message Updates on Procedures After Submission

From April, the debtor representative support system can also be applied for at the Korea Inclusive Finance Agency. The application method will be changed from subjective to objective, making it even simpler.

The Financial Services Commission announced on the 31st that starting next month, it will improve the overall application procedures and system to be more applicant-friendly, allowing easier and faster access to the free debtor representative support system.

The free debtor representative support system is a legal service that provides free lawyers from the Korea Legal Aid Corporation to victims who have suffered (or are at risk of suffering) illegal debt collection by illegal private lenders or who have received loans exceeding the legal maximum interest rate (20% per annum). Since its implementation, the number of cases has been 839 in Q1 2021, 682 in Q1 2022, 1,258 in Q1 2023, 492 in Q1 2024, and 1,343 in Q1 2025, marking the highest usage this year.

The Financial Services Commission first simplified the application form to shorten the time for transferring applications from the Financial Supervisory Service to the Korea Legal Aid Corporation. The application content was changed from descriptive (subjective) to multiple-choice (objective) to minimize the possibility of errors, and the terminology and content of the application items were improved so that applicants can easily understand and conveniently complete them.

Also, to enhance the convenience and accessibility of debtor representative applications, the application channels have been expanded. Previously, applications could only be made through the Financial Supervisory Service or the Korea Legal Aid Corporation, but now applications can also be made offline through the Integrated Support Center for Inclusive Finance within the Korea Inclusive Finance Agency.

Furthermore, starting in June, a dedicated direct phone line for debtor representative applications and consultations will be operated. Currently, all reports related to illegal private finance are connected to the Financial Supervisory Service’s Illegal Private Finance Damage Report Center. Because of this, there have been delays in connecting applicants to counselors for debtor representative support applications, causing difficulties for applicants to use the service promptly.

Finally, guidance on the progress after application will be strengthened. Until now, only confirmation of normal receipt was provided, but going forward, the procedures and expected timeframes after receipt will be notified via text message. Additionally, instructions on how to respond to avoid further illegal private finance damage before the appointment of a debtor representative will be provided.

The Financial Services Commission stated, "Through these procedural improvements, we expect to support more victims of illegal private finance quickly," and added, "We will continue to monitor and improve the operation status in cooperation with related organizations."

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