Regulatory Alerts2024-10-16 | 83220Personal Credit Management and Debtor Protection Act Takes Effect from October 17
The Financial Services Commission announced that the Personal Credit Management and Debtor Protection Act takes effect on October 17, 2024, to balance the rights of financial companies and individual debtors. The legislation establishes a legal framework for financial institutions to provide direct debt workout services for loans under KRW30 million, eases excessive interest burdens on late payments, and imposes stricter rules on debt sales and collection practices. A three-month grace period is granted for implementation, during which authorities will monitor compliance while retaining the power to sanction intentional violations or gross negligence.
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