On December 19, 2025, the Financial Services Commission (FSC) announced a draft amendment to the Enforcement Decree of the Lending Business Act as a follow-up to the presidential briefing. This amendment aims to establish a comprehensive one-stop support system, allowing victims of illegal private lending to initiate multiple relief procedures—such as stopping illegal debt collection, appointing debtor representatives, and blocking abusive contact methods—with a single report. Previously, victims had to file separate reports with various agencies, including the Financial Supervisory Service, police, and local governments, often repeating their stories and submitting documents multiple times. The new system enables victims to file a single report with a dedicated officer at the Credit Recovery Committee, streamlining the process and reducing their burden.
Key changes include revising the illegal private lending report form and expanding the authority to request phone number suspensions. The new form specifies the type of reporter, creditor information, and details of illegal collection, and uses multiple-choice questions to make reporting easier and more accurate. The Credit Recovery Committee will now be legally empowered to request the Ministry of Science and ICT to suspend phone numbers used in illegal lending, collection, or advertising. Previously, only local governments, prosecutors, police, and the Financial Supervisory Service could make such requests, but this expansion is expected to speed up relief for victims.
The draft amendment will be open for public comment from January 26 to March 9, 2026, for a total of 43 days. Afterward, it will undergo review by the Ministry of Government Legislation and be submitted to the Cabinet for approval, with the goal of swift implementation. The FSC, in cooperation with the cross-ministerial task force on eradicating illegal private lending, will continue to review and improve related systems and enforcement measures. The one-stop support system is targeted for launch in the first quarter of 2026. Victims can seek help from the Financial Supervisory Service (1332), the Korea Inclusive Finance Agency (1397), or the Credit Recovery Committee (1600-5500).
This amendment marks a significant step forward in protecting victims of illegal private lending and strengthening financial consumer rights. By enabling one-stop, streamlined relief, the administrative and psychological burden on victims will be greatly reduced. The expanded authority of the Credit Recovery Committee to block phone numbers is expected to enhance the effectiveness of efforts to eradicate illegal lending. Related agencies will continue to improve and enforce the system, further strengthening the nation’s financial safety net.
This amendment exemplifies digital administrative innovation and enhanced consumer protection in the financial sector. The shift to standardized, multiple-choice reporting and the assignment of dedicated officers will facilitate data-driven responses and faster victim relief. Empowering the Credit Recovery Committee to block phone numbers directly addresses the technological tactics used by illegal lenders. In the future, integrating AI for case analysis and automated reporting could further strengthen the financial protection system and reduce the risk of recurring victimization.