Hwaseong City Removes Department Barriers for One-Stop Debt and Livelihood Support for Ordinary Citizens

Integrated Support from the Financial Welfare Counseling Support Center
Connecting Bankruptcy and Personal Rehabilitation with Welfare Services

Mr. A, a resident of Hwaseong City in Gyeonggi Province, also lost his income due to unemployment and relied on credit card debt just to survive. Unable to manage debts totaling around 100 million won, he entered personal rehabilitation proceedings. However, his family faced the risk of breaking up as they could no longer afford rent. Many debtors suffering from debt collection, like Mr. A, experience not only threats to their livelihood but also the complex crisis of potential family dissolution.

Jung Myunggeun, mayor of Hwaseong City, is visiting the Hwaseong City Financial Welfare Counseling Center and discussing the center's operational plans with officials. Photo by Hwaseong City

Mr. A's case was referred from the local administrative welfare center to the Hwaseong City Financial Welfare Counseling Support Center. A counselor at the center determined that Mr. A's family was a crisis household facing not only debt issues but also intertwined problems of housing, employment, health, and family. As a result, relevant departments worked together to develop a comprehensive response plan.

Through these efforts, the center halted debt collection by facilitating rapid debt adjustment through the Credit Counseling & Recovery Service. At the same time, the center requested a payment deferral for the personal rehabilitation repayment to the court, preventing the proceedings from being terminated. Additionally, the administrative welfare center and the Gyeonggi Province Infinite Care Center provided emergency living expenses to address urgent needs. The Hwaseong City Social Welfare Council resolved overdue utility bills, and the Eoullim General Welfare Center offered rent support to help stabilize the family's housing situation.

Since its opening in June of last year, the center has linked 66 cases, including personal rehabilitation and bankruptcy counseling, to various welfare networks, just like in Mr. A's case. For debtors, this one-stop service allows them to receive welfare support in a single location, without having to visit multiple departments.

The center is expanding its collaboration with a variety of organizations, including the court's debt adjustment program, the Credit Counseling & Recovery Service, and the Suicide Prevention Center. In the year since its opening, it has supported 71 cases through court debt adjustment, 65 cases through the Credit Counseling & Recovery Service, and 5 cases through the Suicide Prevention Center.

Song Jinseop, head of the Hwaseong City Financial Welfare Counseling Support Center, stated, "True financial welfare means looking at the entire life of the debtor beyond the paperwork and finding a way forward, even in seemingly impossible situations. We will do our utmost, based on our expertise, to help citizens get back on their feet."