The Term “Credit Delinquent” to Disappear

The term “credit delinquent” will disappear permanently from March of next year.

The Finance and Economy Committee of the National Assembly held a plenary session on December 7 and passed the revision of “Law on the Use and Protection of Credit Information,” which mainly concerns the abolition of the credit delinquent system. The revision takes effect three months after promulgation.

The revision states that the term “credit delinquent” shall not be used, and the expression “those who failed to repay debts on time” as an alternative.

In addition, the revision abolishes the provision, which stipulates that information on credit delinquents shall be provided to companies planning to recruit, thus eliminating restrictions on the employment of credit delinquents.

Chi-Young Shin higgledy@donga.com