The Financial Services Commission announced that the financial sector will provide a one-off credit recovery support program from September 30 that expunges overdue debt history for delinquent debtors who fully repay by the end of December 2025. Individuals and individual business owners are eligible if they accrued overdue debts of up to KRW50 million between January 2020 and August 2025 and have repaid, or will repay, in full by the end of December 2025. The FSC estimates eligibility at about 2.95 million individuals and 748,000 individual business owners, including some 773,000 individuals and 399,000 individual business owners previously excluded from 2021 and 2024 support. Eligibility can be checked via credit rating service providers’ websites, with support applied automatically without an application; about 2.57 million borrowers who had already fully repaid as of end-August 2025 will receive it immediately, while the remaining 1.12 million can qualify upon full repayment by year-end. The program is expected to raise credit scores by about 40 points on average for individuals and about 31 points for individual business owners. Alongside this measure, the FSC plans to introduce a new long-term debt restructuring program aimed at strengthening inclusive finance support.
South Korea Financial Services Commission 2025-09-29
South Korea Financial Services Commission rolls out one-off credit recovery support to expunge overdue debt history for up to 3.7 million borrowers
The South Korea Financial Services Commission will launch a credit recovery support program from September 30, expunging overdue debt history for delinquent debtors who fully repay by December 2025. Eligible individuals and business owners with debts up to KRW50 million can benefit, potentially improving credit scores by 40 points for individuals and 31 points for business owners. Additionally, the FSC plans a long-term debt restructuring program to enhance inclusive finance support.