Cabinet approves amendment to Social Security Benefits Act enforcement decree, expanding crisis data to identify welfare blind spots

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The government will proactively identify and support households struggling with debt by linking financial crisis data — including information on victims of illegal private lending, vulnerable debtors and individuals whose debt restructuring plans have lapsed — to the welfare blind spot detection system.

The Ministry of Health and Welfare said Tuesday that the Cabinet approved an amendment to the enforcement decree of the Act on the Use and Provision of Social Security Benefits and the Search for Eligible Recipients.

Under the amended decree, information on victims of illegal private lenders and illegal private lending brokers will be added as crisis data and linked to the welfare blind spot detection system.

The government plans to collect information on people who have filed reports with the Financial Supervisory Service's Illegal Private Lending Victim Reporting Center as crisis data, enabling it to proactively identify households in financial distress and connect them with welfare services.

Data on vulnerable debtors — those with low income and credit scores among users of policy-based microfinance products such as illegal lending prevention loans and Haetsal Loan special guarantees — will also be added as crisis data.

Previously, only applicants rejected for policy-based microfinance were flagged for outreach. Going forward, the scope will expand to include approved applicants deemed at risk of financial hardship, ensuring they receive the welfare services they need.

Information on individual debtors whose debt restructuring plans have lapsed due to non-compliance will also be added to the welfare blind spot detection system.

Previously, only cases where debtors with arrears of 90 days or more failed to follow through on restructuring plans were flagged. The expanded scope will cover debtors at risk of falling into arrears, as well as those with short-term arrears of less than 90 days whose restructuring plans have similarly lapsed.

Finally, data on households showing unusual signs such as abnormal changes in water usage will be added as crisis data.

While the system has so far relied on information about households facing water cutoffs, it will now also monitor households with unusual fluctuations in water consumption, allowing authorities to proactively identify people in hardship and connect them with appropriate welfare services.

"Debt collection is not merely a financial blow — it is an extreme form of suffering that can destroy a person's life and spirit," said Hyun Su-yeop, first vice minister of health and welfare. "This amendment to the enforcement decree is significant in that it establishes a legal framework to identify and assist households in financial crisis without leaving anyone in a blind spot. As a government that saves lives, we will spare no effort in finding and supporting neighbors in desperate need."


thlee@heraldcorp.com