South Korea adds urgent welfare referrals for illegal-lending victims

South Korea will start urgent welfare referrals for people seeking help over illegal lending on October 30, the Ministry of Health and Welfare announced October 18. Counseling will connect with local welfare teams.

The system will allow the Financial Supervisory Service and Credit Counseling and Recovery Service to refer people needing support to municipal authorities during counseling over illegal-lending harm.

A separate welfare screening round starts October 19 and runs through December 11. The ministry will send local authorities records covering about 190,000 people for assessment, including 17,000 facing financial distress. This round adds records of people whose debt-adjustment arrangements have stopped. Local teams will assess whether support is needed.