In debt adjustment, financial and virtual assets are also checked... "Prevention of moral hazard"

In debt adjustment, financial and virtual assets are also checked... "Prevention of moral hazard"

Credit Information Act amendment passed the National Assembly... Strengthening repayment capability assessment

Government debt adjustment agencies such as the Saedoyak Fund and Saechulbal Fund will additionally verify financial assets and virtual asset holdings when assessing a debtor's repayment capability.

The Financial Services Commission announced on the 23rd that an amendment to the 'Act on the Use and Protection of Credit Information', which contains such contents, has passed the plenary session of the National Assembly.

The amendment newly established a 'Special Provision for Providing Credit Information to Debt Adjustment Institutions', allowing debt adjustment institutions to receive and utilize financial assets such as deposits, savings, and securities, virtual asset holdings, and income and property information (such as tax and real estate information) from information-holding institutions.

Until now, it has been difficult for debt adjustment institutions to verify financial assets or virtual asset holdings without the debtor's consent, according to relevant laws and regulations.

Although repayment capability has been assessed primarily based on real estate and tax information, concerns have been raised that moral hazard should be prevented through a more thorough property assessment.

The Financial Services Commission explained that the purpose is to enhance fairness between those subject to debt adjustment and those who faithfully repay, through a more precise assessment of repayment capability.

However, information provision will be made within the minimum necessary scope, and debt adjustment institutions must individually notify debtors of the information inquiry and allow them to verify the inquiry details.

This special provision will be temporarily applied for three years from the enforcement date. The law is expected to take effect in August, three months after its promulgation.

The Financial Services Commission stated, "With this amendment, the government's debt adjustment institutions will be able to more thoroughly assess debtors' repayment capabilities," adding, "Through this, we will operate the system so that benefits can go to those who truly need support."