Korea Inclusive Finance Agency releases '2026 Outstanding Credit and Debt Management Consulting Cases'

A worker in their 40s who repeatedly quit and changed jobs cut 35 million won in debt to 1 million won

A worker in their 60s hounded by debt collectors saw monthly repayments fall from about 700,000 won to 270,000 won

A parental-leave recipient refinanced high-interest loans, saving about 500,000 won a month

Agency chief Kim Eun-kyung vows to provide tailored credit and debt management consulting

[Getty Images Bank]
[Getty Images Bank]

A person in their 50s — identified only as A — closed a business after it failed, took on more than 100 million won ($74,600) in debt, fell more than 90 days behind on payments and saw their credit score drop to 150. An initial application for debt-restructuring support was rejected, and A had all but given up on a fresh start. After resuming the debt-restructuring process through financial counseling, A cut the debt by 87 percent and raised the credit score by 325 points. A is now preparing to launch a new business.

According to the Korea Inclusive Finance Agency's "2026 Outstanding Credit and Debt Management Consulting Cases" released Wednesday, A had been working day-labor jobs after shutting the business, earning 2 million won a month. Total debt stood at 104.5 million won, and even an application to the Fresh Start Fund — a government debt-relief program — had been rejected on technical grounds, leaving A without any support.

A counselor at the agency guided A through resetting the previous Fresh Start Fund application so a new one could be submitted. The counselor also connected A with the Hope Return Package, a government relaunch-support program for small-business owners, which secured an additional 10 percent reduction in debt. Debts outside the Fresh Start Fund's scope were restructured through the Credit Counseling and Recovery Service's individual workout program.

As a result, A's debt fell 87 percent, from 104.5 million won to 13.74 million won. The KCB credit score rose 325 points, from 150 to 475, and monthly repayments dropped to around 122,500 won.

A worker in their 40s, identified as B, who repeatedly quit and changed jobs and struggled to repay debts, also managed to restore their credit standing. B earned 4 million won a month but had accumulated 35 million won in debt, including loans from high-interest lenders. B was already enrolled in the Credit Counseling and Recovery Service's individual workout program but found repayment difficult due to unstable employment.

A counselor advised B on using a repayment deferral option to avoid being dropped from the debt-restructuring program, and recommended paying off the highest-interest lender loans first whenever extra funds became available. The counselor also explained how to manage overdue payments and handle credit-information registration. B ultimately paid off the Credit Counseling and Recovery Service workout in full and repaid all loans from high-interest lenders and the Sunshine Loan program. Debt fell from 35 million won to 1 million won, and the KCB credit score climbed 308 points, from 571 to 879. This case was selected as the top prize winner in the agency's competition.

Another case involved a worker in their 60s, identified as C, who found relief from the anxiety of debt collection. Earning 1.58 million won a month, C was carrying 58.75 million won in debt and had to repay about 700,000 won each month. As payments fell behind, C was bombarded with collection calls and lived in constant fear that collectors might show up at the workplace.

A counselor recommended the Credit Counseling and Recovery Service's individual workout program and provided psychological support through 30 phone consultations and 162 text-message exchanges. The counselor also explained the Fair Debt Collection Act and the Individual Debtor Protection Act so C could respond to collection attempts. After an individual workout agreement was reached in February, debt dropped from 58.75 million won to 35.67 million won — a reduction of 23.08 million won. The interest rate, previously between 8.14 and 19.99 percent per year, was adjusted to around 6 percent, and monthly repayments fell from about 700,000 won to 270,000 won.

A worker in their 40s, identified as D, who took parental leave and saw income shrink, cut financial costs by refinancing high-interest loans. D had a monthly income of 2 million won and total debt of 36.15 million won, of which 23.57 million won carried high interest rates. Through counseling, D confirmed when a past long-term delinquency record would be cleared and refinanced the high-interest debt into a Sunshine Holssi Loan. Monthly financial costs fell by about 500,000 won as a result, and D set aside an emergency fund of 3 million won. The NICE credit score rose 123 points, from 731 to 854.

A young person in their 20s who had found it difficult even to look for work because of debt also secured a path to recovery. After leaving a job due to health problems, the person had accumulated 19.5 million won in debt — including loans from secondary financial institutions — and fallen behind on payments, pushing their credit score down to 350. Through counseling, the person was enrolled in the basic livelihood support program, received assistance with living and medical expenses and found employment. Monthly income rose from zero to 900,000 won, and the Credit Counseling and Recovery Service's individual workout program provided reductions on both principal and interest.

A self-sufficiency worker in their 70s who was raising a grandchild alone while repaying debt received a combination of debt restructuring and asset-building support. Of total debt of 45.5 million won, a reduction of 43 million won is expected, and monthly repayments are projected to fall from 1 million won to about 70,000 won. The KCB credit score rose 59 points, from 501 to 560.

The Korea Inclusive Finance Agency's credit and debt management consulting service is provided free of charge by financial specialists for up to six months, with one session per month. Applications are accepted on a rolling basis, and clients may reapply after completing a consultation if they need further support.

In September, the agency held a competition among its consultants to identify outstanding cases, selecting six in total — one top prize, two excellence awards and three merit awards. The selected cases will be used in consultant training and service improvement, and will be shared as card-format news content.

Kim Eun-kyung, head of the Korea Inclusive Finance Agency, said the agency is working to provide practical help in reducing customers' debt burdens and improving their credit through tailored consulting. "We will widely share outstanding counseling cases from the field and continue raising the quality of our service for those who need it," Kim said.


snsd@heraldcorp.com