It has been found that 44,900 cases of debt adjustment have been made in the 5 months since the implementation of the Personal Debtor Protection Act.
On the 9th, the Financial Services Commission held a meeting of the monitoring team for the implementation of the Personal Debtor Protection Act and announced this information. The meeting was chaired by Kim So-young, deputy chairman of the commission, and representatives from the Financial Supervisory Service, the Korea Banking Association, the Korea Credit Finance Association, and the Korea Savings Bank Federation attended.
According to the Financial Services Commission, 56,005 applications for debt adjustment were received from the implementation of the act on October 17th last year until March 14th this year. Among them, financial institutions implemented debt adjustments for 44,900 cases. Among these, principal and interest reductions accounted for the most at 26,440 cases, followed by extensions of repayment periods (19,564 cases) and partitioning repayment (12,999 cases).
A debt collection moratorium, which temporarily suspends collection for certain periods due to disasters or accidents, was implemented in 9,079 cases. A system restricting the type of contact for debt collection requests to avoid collection during specific time periods or under certain means was implemented in 32,357 cases.
The Financial Services Commission evaluated that new systems such as the right to request debt adjustment are being quickly established in the market. Deputy Chairman Kim noted, "For the law to take firm root in the financial field, the efforts of the government and financial companies are important," and urged, "Please prepare training for employees to ensure that it can be properly implemented in the financial field."