Household debt relief programs by the CCRS

Household debt relief programs offered by the CCRS help over-indebted individuals regain financial stability through measures such as extending repayment periods, offering installment repayment options, reducing interest rates, and partially or fully discharging debt.

Established under the 「Microfinance Support Act」, CCRS household debt relief programs help you manage debts owed to financial institutions that have entered into the Agreement on Debt Relief Support.

Before-overdue debt management, Content, Details
Content Details
Eligibility

In order to apply, you must meet all of the following conditions :

  • Payment less than 31 days overdue or expected to become overdue
  • Total debt ≤ KRW 1.5 billion
    • unsecured ≤ KRW 1 billion
    • secured ≤ KRW 500 million
  • Newly incurred debt (within 6 months) ≤ 30% of total debt
  • Difficulty maintaining repayment due to unemployment, leave, business closure, illness, or credit deterioration

    Meet at least one of the following :

    • ① Unemployment/leave/business closure within last 6 months
    • ② Diagnosed within last month with illness requiring ≥3 months hospitalization
    • ③ Credit deterioration (applicants in the lowest 10% of personal credit scores as of the application date, or with three or more instances of payments overdue for five days or longer with creditor financial institutions within the past six months)
Reduction and discharge of debt
  • Overdue interest is fully exempted
  • During installment repayment, contracted rate applies
    (max. 15%, or max. 10% for credit cards)
  • During payment-delay period, contracted rate applies
    (max. 10% for credit cards)
Extension of Repayment Period
  • Up to 10 years
  • A 6‑month grace period may apply before repayment
Postponement of Payments
  • Forbearance up to 3 years(including 6-month grace period), depending on :
    • Loan type
    • Total debt amount
    • Repayment ability
    • Collateral
    • Credit history

Pre-workout by the CCRS, Content, Details
Content Details
Eligibility

In order to apply, you must meet all of the following :

  • Payments overdue more than 30 days but less than 90 days
    • If overdue period is between 1 and 30 days, yearly income must be ≤ KRW 40 million, and accumulated overdue days within one year must be ≥ 30 days
  • Total debt ≤ KRW 1.5 billion
    • Unsecured debt ≤ KRW 1 billion
    • Secured debt ≤ KRW 500 million
  • Newly created debt (within 6 months of application) ≤ 30% of total debt
Interest Rate Reduction
  • Overdue interest is fully exempted
  • Up to 30~70% reduction of contracted interest rate
    • Annual interest after reduction ranges from 3.25% to 8%
      (if contracted rate is below 3.25%, the contracted rate applies)
  • Newly created debt (within 6 months of application) ≤ 30% of total debt
Extension of Repayment Period
  • Up to 10 years
Forbearance
  • Forbearance up to 3 years, depending on :
    • Loan type
    • Total debt amount
    • Repayment ability
    • Collateral
    • Credit history

Individual workout by the CCRS, Content, Details
Content Details
Eligibility

In order to apply, you must meet all of the following :

  • Payment is more than three months(90 days) overdue
  • Total debt ≤ KRW 1.5 billion
    • Unsecured debt ≤ KRW 1 billion
    • Secured debt ≤ KRW 500 million
  • Newly created debt (within 6 months of application) ≤ 30% of total debt
  • Income ≥ minimum living cost or Council-recognized repayment ability
Reduction and Discharge of Debt
  • Full exemption of interest and overdue interest
  • Principal reduction of 30~70% based on debt status(e.g., NPL)
  • Principal reduction up to 90% for vulnerable groups
Extension of Repayment Period
  • Up to 8 years (general)
  • Up to 10 years for low-income individuals
Postponement of Payments
  • Forbearance up to 3 years, depending on :
    • Loan type
    • Total debt amount
    • Repayment ability
    • Collateral
    • Credit history

Household debt relief programs application procedureHousehold debt relief programs application procedure

  • Collection activities are suspended starting the day after application.
  • Only a KRW 50,000 application fee applies; no additional costs are required.
  • Unsecured debts with participating financial institutions are consolidated into a single monthly payment.
  • Direct coordination with financial institutions enables faster processing.
  • The application process and required documents are simple, allowing same-day application during your first visit.
  • Online application is available for individuals unable to visit in person.

If you are struggling to repay your debts or are facing bankruptcy, we provide support with filing for individual rehabilitation or bankruptcy.

  • We offer free assistance in preparing required documents, including application forms and repayment schedules.
  • The Korea Legal Aid Corporation and our in-house attorneys support the legal procedures.
  • In addition, Fast-Track Agreements with courts nationwide enable a simplified and expedited filing process.

If you make steady payments according to your repayment schedule for a designated period, you may be eligible for various benefits, including :

  • Early removal of public records from credit reports
  • Access to small-amount emergency living-expense loans (microfinance)
  • Eligibility to obtain new credit/debit cards from designated financial institutions