Debt adjustment programs at a glance
| Program | Who qualifies | Content | How to apply |
|---|---|---|---|
| Fast-track debt adjustment | Up to 30 days overdue (incl. at risk of default) | Interest rate cut 30–50%, installments up to 10 years | Credit Counseling & Recovery Service |
| Pre-workout debt adjustment | 31–89 days overdue | Interest rate cut 30–70%, up to 10 years | Credit Counseling & Recovery Service |
| Individual workout | 90+ days overdue | Late interest and interest waived, part of principal reduced, up to 8–10 years | Credit Counseling & Recovery Service |
| Individual rehabilitation | Steady income, unsecured up to ₩1B · secured up to ₩1.5B | Repay for 3–5 years, rest discharged | Court |
| Personal bankruptcy | Can't repay from income or assets | Discharge after assets are liquidated | Court |
Credit Counseling & Recovery Service programs cover total debt up to ₩1.5B (₩1B secured · ₩500M unsecured) owed to participating financial companies. Private lender and personal debts aren't included, so consider individual rehabilitation.
If you're self-employed or a small business owner, also check whether you qualify for the government's debt adjustment for the self-employed (Fresh Start Fund etc.).
This calculator gives estimates based on published laws and criteria and is not legal advice. Before acting, be sure to check with the official agencies below.
FAQ
Are there downsides to debt adjustment?
Debt adjustment is recorded with the Korea Credit Information Services for a period, making new loans and cards hard to get. Still, you recover faster than if defaults keep piling up.