Financial Institutions to Send Debt Adjustment Texts on Delinquency

Financial institutions in South Korea will be required to send borrowers a text message about possible debt adjustment when their loans become delinquent, and to do so within a few days of the missed payment.​

What the new rule does

• Savings banks, mutual finance institutions, and credit firms will have to alert borrowers by text message when a loan becomes delinquent.​

• The texts must inform borrowers about the possibility of debt adjustment or relief options tied to the delinquency, rather than simply noting a missed payment.​

Timing and scope

• Institutions will be required to send the delinquency/debt‑adjustment text within five days of a borrower falling behind on payments.​

• The obligation applies broadly across non‑bank lenders such as savings banks, mutual finance cooperatives, and consumer credit companies, which together handle a large share of household loans in Korea.​

Policy purpose

• The measure aims to ensure borrowers are quickly informed of restructuring or adjustment options, reducing the risk that small delinquencies snowball into unmanageable debt.​

• Authorities expect that early, standardized SMS contact will encourage repayment, support negotiated adjustments, and improve overall household debt management in the financial system.​