FSC Moves to Speed Up Debt Restructuring for Delinquent Borrowers

The Financial Services Commission (FSC) announced a draft amendment to the 'Supervisory Regulations on Credit Information Businesses' to reduce procedural inconveniences for those applying for debt restructuring, such as personal rehabilitation. The revision includes seven tasks for system improvement, including enhancements to personal rehabilitation procedures. The aim is to establish detailed operational standards for executing policy directions outlined in existing laws, thereby increasing the policy's effectiveness.

The measures include linking computer networks to allow courts to directly verify a debtor's delinquency information. The FSC explicitly named debt restructuring agencies as the Fresh Leap Fund and the New Start Fund, and detailed procedures for notifying debtholders after their financial information has been accessed by these agencies. Regulatory easing was also implemented, including waiving the obligation to report to the FSC when the processing of public MyData is entrusted to the Credit Information & Data Division.

The 'credit growth grade' determined by the credit assessment model (SCB) for small business owners was defined as credit information, establishing a basis for credit evaluation and financial support for small merchants with high future growth potential. As loans to self-employed individuals from financial sectors reached approximately 1,070 trillion won last quarter, the government's institutional framework for addressing debt issues among households and small businesses is being put into place.