More support for households in financial crisis — illegal private lending victims added to the urgent referral system
Source material is a Korean government announcement (in Korean).
The Ministry of Health and Welfare announced a plan to find and support households in financial crisis, under which the state seeks out vulnerable people struggling to make ends meet because of heavy debt or harm from illegal private lending and links them to welfare services.
Key facts
| Announcement | Ministry of Health and Welfare, 9 July 2026 |
|---|---|
| Wider urgent referrals | The Illegal Private Lending Damage Relief Centre and the Korea Legal Aid Corporation join the existing Korea Inclusive Finance Agency and Credit Counseling and Recovery Service |
| Referrals in the first half of the year | About 20,000 from the Korea Inclusive Finance Agency and about 17,000 from the Credit Counseling and Recovery Service |
| New crisis information | Records of people whose debt restructuring has been suspended, vulnerable debtors and illegal private lending victims added — the draft amendment to the Enforcement Decree of the Social Security Benefits Act goes out for public comment (입법예고) in July |
| Work with non-bank lenders | From the second half of the year, savings banks and others will point people to the welfare crisis alert app when signs of crisis appear |
Last checked:
On 9 July the Ministry of Health and Welfare announced its plan to find and support households in financial crisis. It strengthens the system through which the state finds vulnerable people who are struggling to make ends meet because of heavy debt or harm from illegal private lending, and links them to welfare services such as emergency welfare support. At present, the Korea Inclusive Finance Agency and the Credit Counseling and Recovery Service refer people to local governments, and outreach health and welfare teams at eup, myeon and dong offices provide support after counselling and an on-site check (in the first half of this year there were about 20,000 referrals from the Korea Inclusive Finance Agency and about 17,000 from the Credit Counseling and Recovery Service). The Illegal Private Lending Damage Relief Centre and the Korea Legal Aid Corporation will now also take part in the urgent referral system. The welfare blind-spot detection system will add, as crisis information, the Credit Counseling and Recovery Service's records of people whose debt restructuring has been suspended, the Korea Inclusive Finance Agency's records of vulnerable debtors, and the Financial Supervisory Service's records of illegal private lending victims. To allow this, the draft amendment to the Enforcement Decree of the Social Security Benefits Act will be published for public comment (입법예고) in July. From the second half of the year, the ministry will work with savings banks and other non-bank financial institutions so that people are told about the welfare crisis alert app when signs of crisis come up during debt counselling.
Summaries below are factual notes based on government announcements and primary sources — not evaluations or opinions.
FAQ
What help is there if debt is making it hard to make ends meet?
The state seeks out vulnerable debtors first and, after counselling and an on-site check by the outreach health and welfare team at the eup, myeon or dong office, links them to the welfare services they need, such as emergency welfare support.
Where can I ask for help?
You or a neighbour can report a case through the welfare crisis alert app. Reports are passed to the local government responsible, which follows up with welfare counselling and an assessment.