Scope of Debt Adjustment Expands... "Unpaid Budget Phone and Mobile Micro-Payment Bills Now Included"

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Going forward, unpaid bills for budget phone plans and mobile micro-payment services will also be included in the scope of debt adjustment agreements managed by the Credit Counseling and Recovery Service.

On August 18, the Financial Services Commission announced that a revised enforcement decree of the Act on Financial Support for Ordinary People, which includes budget phone and mobile micro-payment service providers as mandatory participants in the Credit Counseling and Recovery Service’s debt adjustment agreements, has been approved by the Cabinet.

This revision follows the March amendment to the Act on Financial Support for Ordinary People, which legally designated the telecommunications sector as a mandatory party to debt adjustment agreements managed by the Credit Counseling and Recovery Service. The enforcement decree specifies the scope of service providers subject to these mandatory agreements.

The amendment stipulates that entities actually operating budget phone services or mobile micro-payment services and holding claims against individual debtors are subject to the mandatory agreements.

Since June of last year, the Credit Counseling and Recovery Service has been working with the telecommunications sector under a business agreement to integrate and adjust the financial and telecommunications debts of vulnerable individual debtors.

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The revised enforcement decree also allows the Korea Inclusive Finance Agency to transfer and manage operating profits from dormant deposit management accounts to a supplementary account for inclusive finance.

The Financial Services Commission expects that, with an additional source of funding for the supplementary account, policy-based inclusive finance can be supplied more efficiently.

The amended enforcement decree will take effect from September 19.

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