South Korea’s Financial Services Commission (FSC) has announced a credit recovery support plan under which past overdue debt history will be expunged for eligible delinquent debtors who make diligent efforts to fully repay overdue debts. The measure is intended to facilitate a prompt return to normal economic activity by removing the continued impact of past delinquency once repayment is completed. Eligibility covers individuals and individual business owners who accrued overdue debts of up to KRW 50 million between January 2020 and August 2025 and who have fully repaid or will fully repay those overdue amounts by 31 December 2025. From 30 September 2025 under a tentative schedule, financial companies and credit information services will suspend the sharing and use of past delinquent debt history for eligible borrowers, which the FSC expects will improve credit scores and reduce disadvantages such as higher interest rates, lower maximum loan amounts, and restrictions on access to new loans. Among about 3.24 million individuals and individual business owners with overdue debts of KRW 50 million or less accrued between 1 January 2020 and 30 June 2025, the FSC estimates around 2.72 million have already fully paid overdue amounts and are eligible, while about 520,000 could become eligible if they repay in full by 31 December 2025.

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