The Financial Services Commission announced that the financial sector will make available credit recovery support in the form of expungement of overdue debt history from September 30. The credit recovery support is a one-off support program intended to help a quick recovery and return to normal economic activities for delinquent debtors who will have fully paid off their overdue debts by the end of December 2025.
Individuals and individual business owners who have accrued overdue debts of up to KRW50 million (between January 2020 and August 2025) but have or will have fully paid off their overdue debts by the end of December 2025 will be eligible to receive this credit recovery support. About 2.95 million individuals and 748,000 individual business owners are expected to be eligible. As of the end of August 2025, about 2.45 million individuals (83%) and 128,000 individual business owners (17%) were found to have already paid off their debts in full. Some of the borrowers who had been excluded from previous credit recovery support (in 2021 and 2024) will be eligible to receive support this time (about 773,000 individuals and 399,000 individual business owners).
Eligibility check is available from the websites of credit rating service providers. By checking eligibility, eligible debtors will automatically receive support without the need to submit application and their credit scores will automatically go up. As such, the credit recovery support is made available immediately from today for some 2.57 million debtors who have fully paid off their overdue debts. The rest (1.12 million) can also receive support upon fully paying off their overdue debts by the end of this year.
The availability of credit recovery support will help to increase credit scores for both individuals (by about 40 points on average) and individual business owners (by about 31 points on average).
Alongside the provision of credit recovery support, the FSC also plans to newly make available a long-term debt restructuring program with aims to enhance support for inclusive finance. The FSC will continue to listen closely to the needs of vulnerable groups and small merchants and implement policies centered on consumer needs.
* Please refer to the attached PDF for details.