Financial Supervisory Service, Credit Counseling and Recovery Service to refer financial crisis households to local governments
The Ministry of Health and Welfare and the Korea Social Security Information Service announced Friday they will operate an emergency referral system that immediately connects households in financial crisis with their local governments.
When the Financial Supervisory Service or the Credit Counseling and Recovery Service identifies victims of illegal private lending who urgently need welfare support — including help with living expenses or housing — the agencies will refer those individuals to the relevant local government through a shared system, with the victim's consent.
Local governments receiving a referral will verify the individual through the Social Security Information System and, following consultation and investigation, provide or connect the person to the necessary welfare services within seven days.
Depending on the severity of the crisis, emergency welfare support and direct applications filed by civil servants on the individual's behalf will also be actively considered.
Local governments, in turn, will refer cases involving illegal lending or debt problems identified during welfare consultations back to the Financial Supervisory Service and the Credit Counseling and Recovery Service.
The emergency referral system launched Friday is a follow-up measure under a plan the government drew up in July to strengthen the identification and support of households in financial crisis.
"Financial institutions and local governments will work together to look into people's daily hardships and swiftly connect those in urgent need of protection with the support they require," said Hyeon Su-yeop, first vice minister of Health and Welfare.
thlee@heraldcorp.com
