1. Overview

Pursuant to Article 35 of the Act on the Management of Personal Financial Claims and the Protection of Debtors, individuals who have defaulted on personal financial loans with a principal of less than KRW 30 million may request debt restructuring. Please note that such requests may be denied based on the results of a review.

2. Eligibility

Debtors who are in default on personal financial loans with a principal of less than KRW 30 million (applicable to cases occurring on or after October 17, 2024).

3. How to Apply

Requests may be submitted by phone (+82-2-2075-4499) or email (jlee@seoulauction.com).

< Cases Where Debt Restructuring Cannot Be Requested >

• Fewer than three (3) months have passed since a previous restructuring agreement was canceled.
• The existence or scope of the debt is currently subject to mediation, arbitration, or litigation.
• A debt restructuring process is already underway or being implemented through the Credit Counseling and Recovery Service (CCRS) or the court.

< Cases Where Debt Restructuring May Be Denied >

• The debt in question is ineligible for restructuring.
• Fewer than three (3) months have passed since a previous restructuring agreement was canceled.
• The existence or scope of the debt is currently subject to mediation, arbitration, or litigation.
• A restructuring process is ongoing or being implemented through the CCRS or the court.
• The debtor fails to comply with requests to correct or supplement documents three (3) or more times.
• The debtor reapplies without any significant change in repayment ability.
• The debt is time-barred due to expiration of the statute of limitations.
• The request is rejected based on the Company’s internal review criteria.

4. Required Documents

(Detailed guidance will be provided during the review process.)

• Debt Restructuring Request Form
• Consent to Access, Collect, Use, and Provide Personal (Credit) Information
• Documents evidencing the debtor’s repayment ability
• Other documents deemed necessary for debt restructuring

5. Debt Restructuring Process

• Request: The debtor submits the required documents to request restructuring.
• Review and notification: The Company reviews the request and notifies the debtor of the result within ten (10) business days.
• Agreement: The debtor confirms and returns the signed restructuring plan within ten (10) business days.
• Implementation: The agreed-upon restructuring terms are executed.

6. Possible Restructuring Terms

• Adjustment of interest rates
• Reduction of interest
• Provision of installment repayment

※ Note: The restructuring terms may be adjusted based on internal review criteria and will be updated and announced accordingly in the event of any changes.

7. Termination of Restructuring Agreement

• Failure to comply with the agreed repayment plan for three (3) or more months
• Death or legal declaration of the disappearance of the debtor
• Failure to comply with the repayment plan due to concealment of assets or income or any other fraudulent act
• Termination requested by the debtor
• Court approval of a rehabilitation plan, repayment plan, or discharge
• Confirmation of another debt restructuring procedure

8. Other Publicly Available Debt Restructuring Programs

• Credit Counseling and Recovery Service (CCRS)

  Overview: For over-indebted individuals unable to make regular repayments, the CCRS provides debt restructuring through extended repayment terms, interest rate reductions, and partial debt forgiveness.

  How to apply: Contact the Credit Counseling & Recovery Service at +82-1600-5500 for consultation and application.

• Court-Supervised Personal Rehabilitation

  Overview: This is a legal process designed to restructure the legal relationships between the debtor and interested parties (such as creditors) when the debtor is unable to repay their debts in the ordinary course. The aim is to support the debtor’s financial rehabilitation while safeguarding the interests of creditors.

  How to apply: Contact the Korea Legal Aid Corporation at +82-132 or the Credit Counseling & Recovery Service at +82-1600-5500 for consultation and application.

• Court-Supervised Bankruptcy and Discharge

  Overview: This is a legal procedure for individual debtors who are unable to repay their debts with the assets available to them. The court ensures equitable repayment to creditors and discharges the debtor from their remaining obligations through formal proceedings.

  How to apply: Consultation and application are available through the Korea Legal Aid Corporation at +82-132 or the Credit Counseling & Recovery Service at +82-1600-5500.