President Lee Jae-myung said that even if there is social criticism, debts for long-overdue borrowers should be written off to help them return to society. In response, Financial Services Commission Chairperson Lee Eog-weon said the system would be improved so that the write-off of long-overdue arrears debt can be embedded in the financial system.
On the 15th, at a Financial Services Commission briefing, Lee told the chairperson, "There are parts the public misunderstand, and Korea is too strict about debt write-offs," adding, "Clearing long-overdue arrears debt that is 5 or 10 years old is very basic in Western societies."
He added, "If someone cannot repay their debt, quickly writing it off so they can engage in normal economic activity also helps society. There is criticism that it could cause moral hazard, but because it is socially necessary, it should be settled quickly."
Chairperson Lee said, "Even the heads of financial firms that were shareholders of the Sangnoksu securitization company said they didn't even know such a company existed," adding, "Since this is a matter of attention and management, we will change things so that the write-off of long-overdue arrears debt can be systemically embedded."