Financial Services Commission Holds 'Personal Debtor Protection Act Implementation Status Inspection Team Meeting'

On the 9th, the Financial Services Commission announced that it held a 'Personal Debtor Protection Act Implementation Status Inspection Meeting' chaired by Vice Chairman Kim So-young, together with related organizations such as the Financial Supervisory Service, the Korea Federation of Banks, the Korea Credit Finance Association, and the Korea Federation of Savings Banks.

The "Act on the Management of Personal Financial Claims and Protection of Personal Financial Debtors" (Personal Debtor Protection Act) was established to strengthen regulations protecting personal debtors throughout the entire process after delinquency (delinquency-collection-transfer).

At the meeting, participants reviewed the implementation status of the Personal Debtor Protection Act and future plans ahead of the expiration of the grace period on the 16th, discussed major supervisory matters following the enforcement of the Act, and examined the current status of new system enforcement under the Personal Debtor Protection Act across different financial sectors.

Regarding the right to request debt adjustment, a total of 56,005 debt adjustment applications to financial companies were made by March 14 since the enforcement of the Personal Debtor Protection Act. Among these, debt adjustments were carried out for 44,900 cases.

Analyzing the processed cases by type (allowing duplicates), principal and interest reduction accounted for the largest portion with 26,440 cases (33%), followed by extension of repayment period (19,564 cases, 25%), and installment repayment (12,999 cases, 16%).

Additionally, even in cases where the benefit of the term was lost due to partial loan delinquency, the imposition of delinquency interest is prohibited on the portion of the debt that would not have matured if the benefit of the term had not been lost. Accordingly, financial companies have eased delinquency interest burdens on debtors for a total of 132,073 claims.

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