South Korea's Financial Services Commission says revised rules took effect on October 12 to curb the repeated extension of limitation periods on overdue personal debt. Under the conditional recognition of bad debts, eligible lenders must generally allow the original limitation period to expire if they seek regulatory recognition of the loss.
The official policy targets overdue claims of up to 50 million won at banks and insurers, or 30 million won at certain other lenders. Exceptions remain for situations such as hidden assets, and the measures do not cancel every debt automatically. The stated aim is to make it harder to continue collecting claims indefinitely after accounting write-offs.