President Lee Jae-myung on the 2nd addressed the occurrence of debtors taking extreme measures due to collection on long-term arrears, saying, "Set up a special body or conduct an investigation to find people (cornered with no ability to repay)," and "If someone is at the point of dying because of debt, in fact that person cannot repay." He also cited the "Just Dream Center," where the government provides free food and daily necessities to vulnerable groups, and said, "Like that, if someone reports that they can't live because they're crushed by debt, we should set up a body to resolve it or do something along those lines."
At the Cabinet meeting that morning, after receiving a related briefing from Financial Services Commission Chair Lee Eog-weon on long-term delinquent claims, Lee said, "Cases that have gone all the way to lenders because repayment couldn't be made for a long time are already more than 10–20 years old, yet collection keeps getting extended," adding, "For those who have endured such harassment and accepted becoming credit delinquents but still cannot repay, isn't the possibility of repayment almost none?"
Currently, the New Leap Fund, aimed at rescuing long-term delinquents with no ability to repay, purchases delinquent claims of 7 years or more and 50 million won or less from financial firms at roughly 5% of face value. Citing the related system, Lee said, "Some worry about moral hazard, like, 'If I hold out, they'll forgive it, so let's endure,' but it's impossible to deliberately not pay while enduring for years being unable to get a job, open an account, or engage in economic activity."
In particular, after introducing a report that a family took extreme measures after leaving a note saying they would "die because of debt," Lee said, "In fact, such cases should be granted bankruptcy and discharge. If they apply to the court, it's granted, but it's highly likely this person didn't know that." Lee went on, "Thinking 'I borrowed out of good intentions, so I must repay until I die, but I absolutely can't, so I'd rather die,' they embraced their family and died," adding, "There are institutional ways to resolve it through a bankruptcy filing or debt adjustment, but these cases were left unattended."
Lee said, "Among cases of suicide, there are far too many stories involving creditors. It's because it's too harsh. In what country do people die because of debt?" He added, "You can apply for bankruptcy in court and get a discharge, but because this is attacked as a highly immoral and bad act, people just suffer in silence and die. This is abnormal." Lee also said, "To prevent people from committing crimes out of hunger and going to prison, we are building hundreds of Just Dream Centers nationwide," and instructed the government to create a body that resolves cases when debtors with no ability to repay file a report.
Lee said, "Not only for debts to financial institutions but also for debts owed to individuals, if you apply for bankruptcy in court and it's proven you truly have no ability to repay, in most cases you can even get a discharge," and added, "We hear stories of entire families committing group suicide—what kind of primitive society is this?" He continued, "We need to set up a special body or conduct investigations to find such cases so we don't hear that people are dying because of debt," adding, "Why die at all? We must systematically investigate and manage unattended cases. This is a tremendous social problem, so the prime minister should build a system."