The enforcement decree of the Financial Support for the People Act, which allows for interest reductions and other support in cases of arrears in affordable mobile communication fees and mobile small payments, was approved in a cabinet meeting held on the 18th and will be implemented from September 19 of this year.
The Financial Services Commission noted, "The enforcement decree is intended to finalize the provisions delegated by the amendment of the Financial Support for the People Act and to reflect the policy measures related to financial support for the people announced on February 28."
According to the enforcement decree, providers of affordable mobile services and mobile small payment services will be included in the list of entities eligible for debt restructuring agreements with the Credit Counseling & Recovery Service (CCRS). If users fail to pay their affordable mobile communication fees and mobile small payments, they will be able to receive debt restructuring, including reductions in arrears interest and extensions of repayment periods. Previously, only major financial institutions such as banks, savings banks, and credit card companies were included, but this will now extend to the telecommunications sector.
Financial authorities said, "With the legalization of the financial and telecommunications debt restructuring system, it is expected that this will enhance the enforceability of agreements and include telecommunications sectors that have not signed some agreements, thus resolving the blind spots in debt restructuring."
Additionally, it will now be possible to transfer the operating profits from dormant deposit accounts within the Korea Inclusive Finance Agency (KINFA) to the financial support supplementary account. The intention is to reflect the transfers of dormant deposits into the supplementary account to supply policy inclusive finance efficiently and flexibly.
Furthermore, with the amendment of the Saemaul Geumgo Act, a Saemaul Geumgo asset management company will be established to manage bad debts of Saemaul Geumgo and the central council, which will be included as an eligible institution for agreements with the Credit Counseling & Recovery Service (CCRS).