Debt and credit recovery counselling
Even "there's no way I can repay" has a procedure. Call 1397.
Where to get advice
- 1397 Credit Counseling and Recovery Service — debt restructuring advice. Free.
- 1332 Financial Supervisory Service — reporting illegal debt collection and financial fraud.
- 132 Korea Legal Aid Corporation — legal advice, guidance on individual rehabilitation and bankruptcy. See legal-aid-overview.
- Korea Inclusive Finance Agency — low-interest loan advice. See microfinance.
- 1399 — reporting illegal private lending.
What options exist
- Debt restructuring — extending repayment or reducing interest, via the Credit Counseling and Recovery Service.
- Individual rehabilitation or bankruptcy — court procedures. Take advice at 132.
- Inclusive finance loans — replacing high-interest debt with lower-interest borrowing. See microfinance.
- Which route fits is decided in counselling. Don't judge it alone.
If you face illegal collection
- Repeated late-night calls, threats to tell your family or employer, and abusive language are illegal.
- Report to 1332 (Financial Supervisory Service) and 112.
- Keep recordings and messages — they are evidence.
- A "body forfeiture pledge" has no legal effect and is itself a crime. Report it immediately.
Where to go
- 1397 Credit Counseling and Recovery Service (debt restructuring, free)
- 1332 Financial Supervisory Service (illegal collection, fraud)
- 132 Korea Legal Aid Corporation (rehabilitation, bankruptcy)
- 1399 illegal private lending reports
- 129 Health and Welfare Call Centre (livelihood support)
Questions people ask
Can foreign residents get advice? Advice is available. Ask 1397 about scheme eligibility, mentioning your residence status.
Does the debt disappear if I go home? It does not. It can instead cause problems with re-entry and credit. Always take advice before departure.
A lender keeps phoning me. It may be illegal collection. Record the calls and report to 1332 and 112.
The debt is crushing me. Debt has solutions. If you feel yourself breaking, contact 109 or 1577-0199 as well. See suicidal-thoughts.
Take care
Anyone charging a fee to "restore your credit" is running a scam. Counselling at the Credit Counseling and Recovery Service is free. Taking another loan out of urgency makes it worse. Call 1397 first and find out the options.
Related
microfinance · legal-aid-overview · scam-types · emergency-welfare · suicidal-thoughts
Source
Credit Counseling and Recovery Service www.ccrs.or.kr / As of 2026-08