Korea Legal Aid Corporation and Credit Counseling and Recovery Service Join Forces to Boost Support for People in Financial Distress
Agreement signed to coordinate personal rehabilitation and bankruptcy services
One-stop support, from document preparation to legal assistance
The Korea Legal Aid Corporation and the Credit Counseling and Recovery Service have joined forces to help people in financial distress get back on their feet quickly.
The Office of the Prime Minister announced that on November 3, government agencies including the Credit Counseling and Recovery Service, the Korea Legal Aid Corporation, the Ministry of Justice and the Financial Services Commission signed an “Agreement on Strengthening Support for People in Financial Distress,” chaired by Chae Ibae, chief of staff to the prime minister.
The agreement aims to strengthen coordination among organizations that support personal rehabilitation and bankruptcy, allowing debtors to receive the public assistance they need without the burden of navigating complex procedures or preparing paperwork.
Under the agreement, the Credit Counseling and Recovery Service will provide comprehensive debt counseling and debt restructuring, and help prepare documents required to apply for personal rehabilitation or bankruptcy. The Korea Legal Aid Corporation will provide legal assistance, including free legal aid in litigation.
In particular, the Credit Counseling and Recovery Service will streamline the document-preparation process by issuing all 17 types of relevant documents at once through the Sharing of Administrative Information system and other means, and sharing credit counseling reports with the Korea Legal Aid Corporation. This is expected to shorten the court review period from the usual 12 months to about six months.
The two organizations will prepare a manual for coordinating their work and put it into effect one month later. They also plan to assign dedicated staff to each branch and step up public outreach and education.
After the agreement was signed, Prime Minister Han Seongsuk met with the heads of the agencies involved, praised the cooperation as a model for overcoming administrative silos, and emphasized that “a social safety net is vital to preventing tragic cases in which people in financial distress give up on life.”
Chae Ibae, chief of staff to the prime minister, said, “We will connect the expertise of each agency in a coordinated way to make services easier for the public to access, and strengthen improvements and support that people can feel on the ground.”
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When debtors are trying to get back on their feet financially, speed matters. We hope this cooperation, which breaks down barriers between agencies, will simplify complex relief procedures and serve as a meaningful stepping stone to recovery.
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