The South Korea Financial Services Commission has proposed adding the planned Credit Union Asset Management Company to the institutions permitted to receive loan claim transfers. The change would allow the company to acquire and manage nonperforming loans from credit unions under the legal framework established by the amended Credit Unions Act. Current rules restrict financial companies and lenders to transferring loan claims only to designated entities, including registered lenders, credit financial institutions and bodies authorized by other laws to manage nonperforming loans. The restriction seeks to prevent claims from leaving the regulated financial system and exposing borrowers to illegal debt collection. The commission plans to complete the amendment process so the change can take effect alongside the amended Credit Unions Act on Oct. 22, 2026.
2026-08-27South Korea Financial Services Commission
South Korea's Financial Services Commission consults on allowing credit union asset manager to acquire nonperforming loans
The South Korea Financial Services Commission has proposed allowing the planned Credit Union Asset Management Company to acquire and manage loan claims. The change would support the disposal of credit unions' nonperforming loans and is intended to take effect on Oct. 22, 2026.