On Apr. 3, SK FSC,SK FSS held meeting on the debtor protection act.
SK FSC and SK FSS held a meeting with related organizations, to discuss preparations for the implementation of the Individual debtor protection act from Oct. 17, 2024.
Follows SK FSC Mar. 2022 proposed rules on debtor protection, see #131569.
Meeting
SK FSC will formulate an enforcement decree and best practices for internal standards in consultation with the financial sector, to achieve the purpose of debtor protection.
As well as ensure that voluntary debt restructuring practices become established.
Requested financial companies to carry out preparations before the implementation, such as development of a computer system, training for employees, user guidance.
Also to strengthen promotion and support for debt adjustment applications.
SK FSC will run a rapid resolution system for difficulties in the financial sector with SK FSS until the implementation, to deal with legal interpretations and other inquiries.
After the act goes into effect, SK FSC will form/run an inspection team to monitor the status of implementing the act, internal standards, continue to make improvements.
On Jul. 17, 2024, SK FSS issued a plan to hold briefing sessions in 5 cities, to ensure compliance of the act by loan businesses, prevent recurrence of illegal debt collection.
It also held a briefing for loan businesses in the Seoul metropolitan area on Jul. 17.
Will share major legal violations identified during inspections, precautions for the operation of loan businesses, and key points of the Individual debtor protection act.
In addition, devise various education channels for loan businesses, continue to inspect legal compliance, provide guidance to ensure that businesses can address deficiencies.
Aug. 2024 SK FSC Best Practices
On Aug. 14, 2024, SK FSC, SK FSS shared best practices for internal standards that loan businesses must establish by Oct. 17, 2024, to comply with the act above.
The five best practices cover internal standards in the areas of transfer of claims, debt collection, collection consignment, debt adjustment, as well as user protection.
Industry associations are to revise, supplement, and distribute these best practices according to the characteristics of each business area, and loan businesses shall comply with the establishment of internal standards by Oct. 17, 2024.
In Sep. 2024, SK FSS issued a plan for inspections of loan businesses, see #224880.
Oct. 2024 Review Meeting
On Oct. 8, 2024, SK FSC and SK FSS held a meeting to review the preparation status prior to the implementation of the Individual debtor protection act from Oct. 17, 2024.
SK FSC stressed close cooperation between SK GVT and financial firms; will set up an implementation monitoring team to verify the status of applying the new act and operating financial companies' internal standards such as debt restructuring standards.
SK FSC requested financial companies to establish internal standards, conduct employee training, strengthen online/offline publicity on financial support for debtors.
