Chairman Kim Joo-hyun of the Financial Services Commission attended an MOU (memorandum of understanding) signing event held for financial industry groups and credit information companies with an aim to provide prompt credit recovery support for borrowers in payment delinquency on January 15.

This agreement signing is a follow-up to the meeting held at the National Assembly on January 11 in which the financial sector, the ruling party and the government discussed the need to promptly make available credit recovery support for those in need. To this end, the financial industry associations agreed to suspend the practice of sharing and making use of borrowers’ past delinquent payment information when their late payments have been fully paid.

At the event, FSC Chairman Kim said that it is necessary to give a second chance to those who fell victims to the unavoidable and abnormal environmental circumstances, such as the effects of COVID-19 and continuation of high interest rates and high prices. There are currently some 2.9 million individuals experiencing difficulties in having normal access to financial services due to their delinquent payment history. In this regard, Chairman Kim expressed his appreciation for the financial sector for quickly proceeding with the agreement and urged financial companies to promptly make such help available.

The financial industry groups and credit information companies said that they will quickly make relevant adjustments to their computer system to halt the sharing and making use of borrowers’ past delinquent payment information as early as from March 2024.

* Please refer to the attached PDF for details.