South Korea’s Financial Services Commission launches integrated debt counseling hotline with crisis support

South Korea’s Financial Services Commission and the Credit Counseling and Recovery Service launched a free national debt counseling hotline connecting borrowers to existing relief schemes and related assistance. Following an October pilot, the service implements a measure in the government’s July 14 suicide prevention package for people in financial crisis, addressing gaps in awareness of available support. It also aligns with the commission’s previously outlined priorities of earlier debt restructuring and coordinated financial, employment and welfare assistance. Counseling covers financial debt and unpaid telecommunications and electricity bills, alongside assistance with personal rehabilitation and bankruptcy applications. Victims of illegal private lending receive a designated case handler and referrals to reporting and support services. Callers can transfer between debt counseling and specialist financial or legal agencies without disconnecting, while suicide prevention and welfare counseling services can transfer callers directly into debt counseling. A dedicated specialist team handles cases involving severe psychological distress, illegal lending or acute livelihood risks. It provides longer consultations, supports debt restructuring and coordinates referrals to legal, employment, welfare and mental health services.