Some MVNO operators and mobile micro-payment providers will be included as subjects of debt adjustment agreements with the Credit Recovery Committee, which is expected to address the blind spots in debt adjustment for vulnerable individual debtors.
The Financial Services Commission (FSC) announced today (the 30th) that it will hold a pre-announcement of legislation for the amendment of the ‘Enforcement Decree of the Act on the Support for Financial Life of Ordinary People’ from May 1 to June 10. The amendment procedures, including the review by the Ministry of Government Legislation, are expected to be completed by the law’s enforcement date on September 19.
Through the amendment of the Enforcement Decree of the Act on the Support for Financial Life of Ordinary People, the FSC has included businesses that actually engage in MVNO operations and mobile micro-payment businesses and hold individual debtor credits as subjects for Credit Recovery Committee debt adjustment agreements.
In June last year, the Credit Recovery Committee signed a business agreement with the three major mobile carriers, SK Telecom, KT, and LG Uplus, as well as MVNO operators and mobile micro-payment service providers, to comprehensively adjust the financial and telecommunication debts of vulnerable individual debtors.
According to the amendment to the Act on the Support for Financial Life of Ordinary People announced on April 18, the telecommunication sector was made an obligatory subject for Credit Recovery Committee debt adjustment agreements, with the scope of obligatory subjects, including MVNOs and mobile micro-payment service providers, delegated to the Enforcement Decree. Consequently, the current amendment designates those who actually engage in MVNO operations and mobile micro-payment businesses and hold individual debtor credits as mandatory agreement subjects.
The FSC expects the legalization of the financial and telecommunication debt adjustment system through this amendment to increase the enforceability of agreement execution and extend coverage to some unmet telecommunication sectors (approximately 2% market share), thus eliminating debt adjustment blind spots.
It will allow the transfer and use of operational profits from the dormant deposit management account within the Korea Inclusive Finance Agency to the supplemental account for inclusive finance.
Currently, the operational profits of the dormant deposit management account are transferred for use in the self-support account. This amendment will add the option to transfer to the supplemental account for inclusive finance and reflect dormant deposit transfers in the funding scope of the supplemental account.
With the addition of funding sources for the supplemental account, it is expected to enable the efficient and flexible provision of policy-based inclusive finance.
According to the amendment to the Saemaul Geumgo Act, which will be enforced on July 8, a ‘Saemaul Geumgo Asset Management Company’ will be newly established for the management of non-performing loans of Saemaul geumgo and the Saemaul Geumgo Central Association, which will also be included as a subject institution for Credit Recovery Committee agreements.
Your report can turn into news. SBS Biz is waiting for your reports.
Website = [https://url.kr/9pghjn](https://url.kr/9pghjn)