Tomorrow, Credit Amnesty for Low-Income Earners and Small Business Owners... Approximately 290,000 Eligible for New Credit Card Issuance

Personal credit scores to increase by 40 points... About 20,000 self-employed individuals to qualify for loans from tier 1 financial institutions

Financial Sector Joint Business Agreement Ceremony for Credit Recovery Support for Low-Income Earners and Small Business Owners (Seoul=Yonhap News) Reporter Yoon Dong-jin = Attendees are signing at the Financial Sector Joint Business Agreement Ceremony for Credit Recovery Support for Low-Income Earners and Small Business Owners, held at the Press Center in Seoul on the 20th. 2025.8.20 mon@yna.co.kr

The Financial Services Commission announced on the 29th that it will provide credit recovery support to up to 3.7 million low-income individuals and small business owners who have fully repaid their small overdue debts.

This credit recovery support is for individuals and self-employed individuals who incurred overdue debts of 50 million won or less between January 2020 and August 2025, and who fully repay these debts by the end of this year.

For approximately 2.577 million individuals who have fully repaid their overdue debts incurred during this period, their overdue history information will be deleted immediately starting on the 30th.

An additional approximately 1.126 million individuals who have not yet repaid their overdue amounts can receive credit recovery support without a separate application if they fully repay by the end of the year.

The Financial Services Commission stated that its analysis of the credit recovery support effects for those who fully repaid their overdue amounts by the end of August showed an average increase of 40 points in personal credit scores, from 616 to 656.

In particular, the average credit scores of those in their 20s and 30s increased by 50 points and 42 points, respectively, demonstrating a recovery support effect for younger generations.

Additionally, approximately 290,000 people will be able to obtain new credit cards, and about 230,000 people are expected to surpass the average credit score for new loans from tier 1 financial institutions.

The average credit score for self-employed individuals is projected to increase by 31 points, from 696 to 727, making approximately 20,000 individuals eligible for loans from tier 1 financial institutions.

Starting on the 30th, individuals can check their eligibility for credit recovery support on credit rating agency websites. For eligible individuals, credit scores will automatically increase without a separate application process. Yonhap News

[Graphic] Overview of Credit Recovery Support for 'Credit Amnesty' (Seoul=Yonhap News) Reporter Lee Jae-yoon = The government will implement a so-called 'credit amnesty' that will delete overdue history for those who fully repay overdue debts of 50 million won or less incurred since 2020 by the end of this year.

The Financial Services Commission announced on the 11th that starting from the 30th of next month, it will implement credit recovery support that deletes overdue history information for low-income earners and small business owners who diligently repay their full debts, even if they have been overdue due to COVID-19, economic recession, or state of emergency.

yoon2@yna.co.kr

X (Twitter) @yonhap_graphics Facebook tuney.kr/LeYN1