The Financial Services Commission announced a plan to make available credit recovery support in the form of expungement of overdue debt history for delinquent debtors on August 11.

Individuals and individual business owners who have accrued overdue debts of up to KRW50 million (between January 2020 and August 2025) but have or will have fully paid off their overdue debts by the end of December 2025 will be eligible to receive this credit recovery support.

For these individuals making diligent efforts to fully pay off their overdue debts, starting from September 30, 2025 (tentative schedule), financial companies and credit information services will suspend the practice of sharing and making use of past delinquent debt history to facilitate their prompt recovery and return to normal economic activities.

Among some 3.24 million individuals and individual business owners who have accrued overdue debts worth KRW50 million or less between January 1, 2020 and June 30, 2025, as of now, there are about 2.72 million individuals who have already completed making overdue payments in full and are eligible to receive credit recovery support. The rest or the other 520,000 individuals and individual business owners can also gain eligibility if they successfully pay off overdue debts in full by December 31, 2025.

With the credit recovery support in place, those making diligent efforts to pay off overdue debts in full will see a boost to their credit scores, no longer having to face disadvantages in terms of interest rate, maximum loan amount, and access to new loan.

* Please refer to the attached PDF for details.