Financial authorities and the financial sector have officially begun the credit pardon for up to 324 individuals. Those who pay off arrears of 50 million won or less by the end of the year are eligible for pardon.
On the 20th, the Financial Services Commission held a ceremony for a joint business agreement among the financial sector for "supporting credit recovery for the common people and small businesses" at the Korea Press Center in Jung-gu, Seoul.
If individuals and sole proprietors fully repay arrears occurring from January 2020 until this month, totaling 50 million won or less, by the end of this year, the main content of the agreement is to limit the sharing and utilization of arrears history information so that it is not reflected in credit evaluation. The credit pardon will be implemented starting on the 30th of next month. The Financial Services Commission expects there will be credit pardons for up to 324 individuals.
To implement this agreement, a "practical working group" will be formed, involving credit information companies and various financial associations centered around the Korea Credit Information Services. The Financial Supervisory Service plans to proactively issue a non-action letter to ensure there is no uncertainty regarding inspections and sanctions that may arise from financial companies not using arrears history information.
Debtors can directly check whether they are eligible for credit recovery support through NICE Credit and KCB All Credit.
Kwon Dae-young, deputy chairman of the Financial Services Commission, attended the agreement ceremony and said, "A liability for individuals as debtors does not end until death. Even if they struggle to repay their debt, the label of 'financial delinquent' makes normal economic activities difficult," and noted, "This credit recovery support is a kind of safety measure to help anyone quickly return to normal life from these unexpected risks that can happen to anyone."
Deputy Chairman Kwon also urged for quick preparations, including IT development, so that common people and small businesses can return to normal economic life as soon as possible.
Cho Yong-byeong, chairman of the Bankers Association, responded, "We will actively support those who sincerely strive to recover by breaking the cycle of arrears and making normal financial transactions and economic life possible again."