President Lee Jae-myung viewed illegal debt collection by banks as a major cause of suicides among the financially vulnerable and called for a review of laws and regulations. According to Spokesperson Kang Yu-jung on the 22nd, the president directed a review of changing relevant laws and financial committee regulations during a senior secretary meeting he chaired the day before, stating, 'The burden of debt inherited due to illegal debt collection by banks should not crush the will to live.'

President Lee Jae-myung is speaking at the 8th chief secretary and advisor meeting held at the Yongsan Presidential Office in Seoul on the 21st. /Courtesy of Yonhap News Agency

The president noted, 'The burden of repayment due to excessive liability and illegal private finance, along with debt collection pressure, are direct and indirect causes of suicides among the financially vulnerable,' adding that he questioned, 'Isn't assisting debt collection by financial institutions infringing on the rights of debtors?'

'Also, we cannot allow debts to be inherited through illegal debt collection due to banks failing to properly notify about the expiration of the statute of limitations,' the president said. After reviewing the suicide status of victims of lease fraud, he remarked, 'We need to create deep financial policies considering whether there are any loopholes in the lease loan system, taking into account both the effects and side effects of the policies.'

On that day, the staff proposed measures such as 'reinforcing debt rationalization to assist financial suicide victims.' Spokesperson Kang stated, 'The president instructed to devise financial policies that could obligatorily prevent voice phishing and lease fraud, and reduce significant industrial accidents through financial regulation.'

Spokesperson Kang responded to the opinions presented by the staff, saying, 'In the past, while experiencing the IMF era, debt collection in the financial sector occurred more severely compared to overseas cases.' He added, 'There was an opinion that if the financial committee regulations were revised, it would suffice to address the obligation to notify even after the expiration of the statute of limitations. If there are aspects of the law that can be changed in the National Assembly, it was suggested to return to a level comparable to other countries and ensure that people do not fall into the trap of debt collection.'

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