29,700 Telecommunications Fee Defaulters Received Debt Relief

After the Implementation of the Integrated Financial and Telecommunications Debt Adjustment System Last Year, Many Beneficiaries Emerged
Applications for Telecommunications Debt Adjustment Amounted to 61.25 Billion KRW
Estimated that Vulnerable Groups Have Benefited

# Mr. A, in his 40s, experienced health deterioration due to a brain tumor diagnosis, making normal economic activities difficult. He applied for debt adjustment through the Credit Recovery Committee (Shinbokwi) and received support for financial debt adjustment. However, he was unable to resolve overdue telecommunications debt, resulting in restrictions on using his mobile phone under his name, including phone calls, which made daily life challenging. After applying for debt adjustment, financial debt collection was halted, but overdue notices for telecommunications fees frequently arrived at his home, causing ongoing anxiety. Then, in June of last year, upon hearing about the implementation of the 'Financial and Telecommunications Integrated Debt Adjustment' system, which allows telecommunications debt to be adjusted through Shinbokwi, he applied for additional telecommunications debt adjustment. From the day after his application, telecommunications debt collection was stopped, bringing him considerable relief. During the telecommunications debt adjustment consultation, he was advised to connect with welfare services and, after consulting with the local community center, he also applied for basic livelihood security benefits.

The Financial Services Commission announced on the 9th that since the implementation of the 'Financial and Telecommunications Integrated Debt Adjustment' in June of last year, approximately 29,700 people have applied for telecommunications debt adjustment and received confirmed support over about eight months until the end of last month. The total telecommunications debt amount applied for by integrated debt adjustment users was approximately 61.25 billion KRW. Specifically, mobile carriers accounted for 49.66 billion KRW (81.1%), MVNOs (Mobile Virtual Network Operators) for 680 million KRW (1.1%), and micropayment companies for 10.91 billion KRW (17.8%).

The Financial and Telecommunications Integrated Debt Adjustment is a system that allows debtors with financial debts who have overdue telecommunications fees or micropayment charges to apply for debt adjustment through Shinbokwi and have both financial and telecommunications debts adjusted at once. Considering the debtor’s repayment ability, debts are reduced to a manageable level and can be repaid in installments over up to 10 years.

When telecommunications debt is overdue, users cannot use communication services such as calls and texts, which imposes significant restrictions on economic activities like job searching. The government judges that if telecommunications debt has been overdue for a long time despite these restrictions, the debtor is likely to be part of a vulnerable group facing severe financial difficulties. In fact, examining the characteristics of integrated debt adjustment users shows that vulnerable groups such as basic livelihood security recipients and single-parent families account for 52.3%.

Applications and submissions for the Financial and Telecommunications Integrated Debt Adjustment can be made through 50 Community Financial Integrated Support Centers nationwide (in-person), Shinbokwi’s online counseling department, and a dedicated app. The Financial Services Commission and the Ministry of Science and ICT emphasized that they will closely monitor the field and continuously identify necessary measures to support the full economic independence of vulnerable groups.