FSS and Ministry of Health and Welfare to Promptly Identify Financially Vulnerable Households and Link Them to Welfare Services

Discussion on Cooperative Measures to Address Financially Vulnerable Households
Connecting to Welfare Services

The Financial Supervisory Service (FSS), in collaboration with the Ministry of Health and Welfare, will strengthen its partnership system to promptly identify financially vulnerable households, such as victims of illegal private lending and long-term delinquent debtors, and connect them to welfare services.

On June 24, Lee Chanjin, Governor of the Financial Supervisory Service, announced that he held a meeting with Hyeon Suyeop, First Vice Minister of Health and Welfare, at the FSS headquarters in Yeouido, Seoul, to address financial crisis households.

This meeting was organized as a follow-up to the "Financial Business Agreement to Strengthen Response to Financial Crimes Targeting Vulnerable Groups," signed by the Ministry of Health and Welfare and the Financial Supervisory Service on May 7. In particular, concrete measures for cooperation were discussed in response to President Lee Jaemyung's directive at the Cabinet meeting on June 2 to enhance the identification of vulnerable debtors and to strengthen the promotion of debt adjustment.

The two agencies shared strategies to reinforce the identification system for financially vulnerable households suffering from illegal private lending, including early detection of crisis signs and promoting referrals between institutions.

They also agreed to actively identify individuals such as those whose debts are being written off or adjusted through the Saechulbal Fund, users of seizure protection accounts, repeat delinquent debtors, and victims of illegal private lending, and to connect them to welfare services through municipal and district-level social welfare officials at local community centers.

The aim is to ensure that those experiencing financial difficulties can receive support within the public welfare system before such problems lead to livelihood crises or social isolation.

Hyeon Suyeop, First Vice Minister of Health and Welfare, said, "We must ensure that financial crises stemming from illegal private lending and debt do not escalate to life-threatening situations by promptly and thoroughly identifying financially vulnerable households and enabling them to access the welfare safety net."

Lee Chanjin, FSS Governor, also stated, "We will work together with the financial sector to utilize a wide range of financial information from financial companies to detect early signs of crisis among borrowers and to ensure swift and effective welfare support connections."

This content was produced with the assistance of AI translation services.