The government is establishing a comprehensive support system to identify citizens struggling with excessive debt early and connect them with services ranging from debt adjustment to personal rehabilitation, bankruptcy, and welfare and employment support. Starting in October, the Credit Recovery Commission will operate a debt counseling hotline at '1375'.
On July 14, the Financial Services Commission reported to the Cabinet meeting on the 'Suicide Prevention Measures for Economic Crisis Victims' developed in collaboration with relevant ministries. The number of suicide deaths due to economic issues rose from 3,089 in 2015 to 4,398 in 2024, increasing its share of total suicides from 23.0% to 29.6% during the same period.
The government will initially operate the Credit Recovery Commission as a comprehensive support center for debtors. The Commission will provide guidance and connections for debt adjustment, personal rehabilitation and bankruptcy applications, illegal loan reporting, and employment and welfare services. The hotline number 1375 signifies 'healing the daily struggles caused by debt' and will operate on a recipient-paid basis.
The government also plans to expand debt support centers. This month, the number of comprehensive support centers for personal rehabilitation and bankruptcy will increase from 10 to 12, with plans to expand the number of integrated support centers for low-income finance from 50 to 56 by the end of the year. A unified issuance system will be established at the Credit Information Center to prevent applicants from having to obtain debt certificates from multiple financial institutions.
A system will also be developed to proactively identify individuals in economic crisis using financial and non-financial data. This includes creating a 'special model for economic crisis victims' that combines information on debt, high-interest loans, and revolving credit with health insurance premium payment data, while expanding financial information linked to the Ministry of Health and Welfare's crisis household identification system.
New financial products specifically for vulnerable groups will be launched in collaboration with private financial institutions. BNK Busan Bank will offer loans and savings products with interest rate benefits for vulnerable borrowers who diligently repay policy-based low-income finance. Woori Card plans to introduce a product tentatively named 'Woori Hope Card' for users who face difficulties obtaining both regular credit cards and Sunshine Loan cards.
Additionally, a credit life insurance program funded by the insurance industry will be provided free of charge to users of comprehensive support, covering part of the debt adjustment balance in cases of serious illness or death. Financial support initiatives for overcoming economic crises will be made easily accessible through the low-income finance platform 'Itda.'
* This article has been translated by AI.
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