South Korea launches 1375 hotline for comprehensive debt counseling

The Financial Services Commission and the Credit Counseling and Recovery Service (CCRS) have officially launched ‘1375’, a dedicated hotline designed to provide one-stop support for individuals struggling with debt. The service, which began full operations on the 29th, aims to assist those facing financial difficulties by offering guidance on debt restructuring, personal rehabilitation, and bankruptcy applications.

Beyond financial debt, the hotline covers utility arrears, such as telecommunications and electricity bills, and provides support for victims of illegal private financing. To ensure comprehensive care, the service can connect callers directly to other specialized agencies, including the Korea Legal Aid Corporation, the Financial Supervisory Service, and welfare or suicide prevention centers, without the need to hang up.

A specialized deep-counseling team has been established to assist high-risk individuals showing signs of extreme psychological distress or crisis. This initiative follows government directives to prevent individuals from giving up on life due to economic hardship. To reduce the burden on debtors, the CCRS will cover all call charges for the service.