Shadow of Crimson Forfeiture Ticket

˝I can`t repay the debt. Do what ever you can.˝

Mr. K(55), a debt executor and other three officials from the Seoul District Court visited the apartment of A, a debtor living in Socho, Seoul in the Sunday morning. A is delinquent on 13 billion won in credit card debt. Without any hope, A just watched the officials placing crimson forfeiture tickets on all what he had, including a refrigerator and a TV.

Although all of A`s household belongings were confiscated, when items were appraised to their lowest values according to the rule, they were worth just 1 million won. When the appraisal fee of 60,000 won and the execution fee of 200,000 million won were excluded, what is left is just 600,000 to 700,000 won.

Other than A`s home, executor K also went to the houses of two other debtors. But he had to return with empty hands since no one was there. He said, ˝I was fortunate not to greet anyone resisting with a knife. And in most cases, even when all household belongs are confiscated, their total value does not exceed 1 million won.˝

Amid a severe recession, the number of debtors having their asset forfeited or being forced to auction their assets is rising. The cases of asset seizure, which had soared during the 1997 Asian financial crisis but has been on the decline since then, started to pick up from last year. As of late August this year, the number of forfeiture cases has already reached the total number of such cases recorded in the previous year.

According to debt executors, the most marked change from the past is that debtors these days have no ability to repay their debt whatsoever.

In the past, when greeted with debt executors, about 30% of debtors said they would repay their debt later, if not on that day. But today many of them are helpless before executors.

As a result, the repayment ratio dropped to 10%. Executors note that having long paid their credit card debts with other credit cards, many debtors have nowhere to turn to.

Another new trend is that 50% of those having their assets forfeited got into such a predicament due to their credit card debts.

A debt executor at the Seoul District Court explained, ˝Forfeiture due to credit card debt, that had accounted for just 10 to 20% of the total seizure cases in the past, has risen dramatically from last year.

With the skyrocketing unemployment rate among the young, the number of credit delinquents in their early or mid 20s has soared, many of whom have nothing to have forfeited.

Such a grime situation leads to excessive behaviors of debtors.

Some come out with drenching themselves in paint thinner and holding a profane gas. Others wield a knife. It means that many people have already given up every hope and been cornered.

Mr. K said, ˝I realized that people don`t want to lose even a coat by their nature even when they already lost their house.˝ rubbing the bruised left thumb, he got hurt days ago fighting with a debtor.

Another debt executor sighs saying, ˝Encountering a violent debtor is relatively easy to deal with. What`s worse is having to drag out a person in a wheelchair or to face a debtor who intentionally brings home his old bed-ridden mother from a hospital.

Sun-Woo Kim sublime@donga.com