Financial assets and even crypto to be checked during debt adjustment... 'Preventing moral hazard'

Saechulbal Fund [Yonhap News Agency file photo]

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

The amendment newly established a 'special provision for providing credit information to debt adjustment organizations,' allowing debt adjustment organizations to obtain and utilize information on debtors' financial assets such as deposits, savings, and securities, and virtual asset holdings, income and asset information (such as tax and real estate information) from information-holding institutions.

Until now, debt adjustment organizations found it difficult to verify debtors' financial assets or virtual asset holdings without their consent, in accordance with relevant laws and regulations.

Although repayment ability has been reviewed primarily based on real estate and tax information, concerns have been raised that moral hazard should be prevented through a more thorough asset review.

The Financial Services Commission explained that the purpose is to enhance fairness between those eligible for debt adjustment and those who faithfully repay through a more precise review of repayment ability.

However, information provision will be carried out within the minimum necessary scope, and debt adjustment organizations must individually notify debtors of the information inquiry and allow them to confirm the inquiry details.

This special provision will be temporarily applied for three years from its effective 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 organizations will be able to conduct a more thorough review of debtors' repayment abilities," adding, "Through this, we will operate the system to ensure that benefits reach those who truly need support."