Establishment of Debt Management Advisory Subcommittee
Five Experts Appointed to Strengthen Support for Low-Income Borrowers
The Korea Inclusive Finance Agency announced on the 27th that it has established the 'Debt Management Advisory Subcommittee' within the Inclusive Finance Advisory Committee to strengthen expertise in supporting the recovery of low-income borrowers through debt adjustment and other services.
On the 27th, attendees of the Debt Management Advisory Subcommittee of the Financial Counseling Committee at the Korea Inclusive Finance Agency are taking a commemorative photo. Provided by Korea Inclusive Finance Agency.
The Debt Management Advisory Subcommittee is an external expert panel formed to discuss the efficient management of recourse claims and non-performing loans, which have increased with the growing use of inclusive finance products. Five external experts with research and experience in debt adjustment and related fields participate as members. They include Lee Young-kyung, Senior Research Fellow at the Korea Institute of Finance; Yeo Gyu-ho, Judge at the Seoul Rehabilitation Court (legal debt adjustment); Kim Myung-hoe, Manager at the Credit Recovery Committee (private debt adjustment); Yuk Byung-seok, Manager at KCB (credit information); and Kwak Jong-gyu, Team Leader at Korea Credit Information (debt collection).
At the first meeting held following the appointment ceremony, the members received reports on the Korea Inclusive Finance Agency's management status of recourse claims and non-performing loans. They also exchanged opinions on support measures for the recovery of low-income borrowers, including comprehensive discharge application criteria for debtors who have received personal rehabilitation or bankruptcy discharge decisions from the court.
Lee Jae-yeon, President of the agency, stated, "As the economic downturn prolongs, the debt burden on vulnerable groups such as low-income individuals and self-employed persons is increasing due to growing debt sizes and reduced repayment capacity." He added, "We will establish a professional and systematic debt management system to support the recovery of low-income borrowers through debt adjustment and other measures, ensuring they do not suffer from long-term delinquency."
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