1. Reason for revision

As the Act on the Management of Personal Financial Claims and the Protection of Personal Debtors set to be implemented on October 17, 2024, it is intended to establish detailed matters delegated in the Enforcement Decree by the Act and the matters delegated in supervisory regulations by the Enforcement Decree.

2. Main contents

A. Activation of self-debt adjustment by financial companies

- It prescribes the detailed procedures for effectively protecting delinquent debtors and avoiding an excessive increase of the burden on financial companies when performing debt adjustment work.

- To ensure that self-debt adjustment may be effectively performed by financial companies, it establishes the operation principles and manpower requirements for exclusive debt adjustment.

- It prescribes that debt adjustment cannot be requested if three months have not passed since cancellation of the debt adjustment agreements (non-performance, etc.).

- It prescribes that financial companies cannot cancel debt adjustment agreements if the debt adjustment repayment plan has not been implemented for three months or longer without any specific situation.

- It prescribes the methods of notification and contents to protect debtors without an excessive increase of the burden on financial companies.

B. Limitation of excessive interest burden due to delinquency

- It stipulates the cost of managing and collecting delinquent receivables that can actually be received even when delinquent interest is limited in order to preserve the normal profits of financial companies.

- It prescribes detailed regulations on receivables subject to exemption from future interest receivables.

C. Debtor protection is strengthened by limiting customary receivables sales.

- It adds repeated sale receivables and receivables with unclear bond/debt relationship to non-transferable receivables.

- Customary sale is avoided and (it) prescribes the matters needed to protect debtors in cases of sale.

D. Limitation of excessive collection and guarantee of a normal life for debtors

- It prescribes the time and method of calculating collection to ensure that the purpose of collection is not significantly impaired.

- It prescribes the collection grace period, the reasons for the grace period, and the reasons for exceptions to the grace period.

- It prescribes that requests for limitation of collection contact at a specific time and by a specific means shall be accepted, and stipulates the reasons for non-acceptance.