Starting in Feb., people will be able to open a "living expense account" at financial institutions that allows them to use up to 2.5 million won per month without fear of seizure. In addition, reflecting higher prices and the minimum wage increase, the seizure-exempt amount has risen by 650,000 won from the previous 1.85 million won.
The Ministry of Justice said on the 20th that a revision to the enforcement decree of the Civil Execution Act containing these measures passed the Cabinet meeting. Earlier, the revised Civil Execution Act passed the National Assembly on the 8th.
Until now, creditors could seize accounts into which salaries and other living expenses were deposited. To use living expenses, a debtor had to go through a legal dispute before being able to withdraw funds.
Under the revised Civil Execution Act, a living expense account system will be introduced that bans seizure of accounts holding necessary living expenses for the debtor. It is expected to ease the difficulties of people with debt.
Starting in Feb. this year, anyone can open one living expense account per person at a range of financial institutions, including major domestic or regional banks. Up to 2.5 million won can be deposited in this account over one month and used without fear of seizure. The seizure-exempt amount has also been raised from 1.85 million won to 2.5 million won.
The amount of guaranteed insurance that cannot be seized will also increase, with death benefits rising from 10 million won to 15 million won, and maturity and surrender refunds increasing from 1.5 million won to 2.5 million won.
The higher seizure-exempt amount applies to seizure order applications filed after the system takes effect.
Minister Jung Sung-ho of the Ministry of Justice said, "This legal revision is intended to more robustly protect the livelihoods of debtors and their families, and to support a fresh start and economic recovery for vulnerable groups such as small business owners and young people."