Integrated debt counseling '1375' to operate from October to prevent suicides

Starting in October, South Korea will introduce a unified consultation hotline, '1375', to assist individuals struggling with overwhelming debt. This new service aims to provide comprehensive guidance on various support systems, including debt restructuring, personal rehabilitation, and bankruptcy procedures. The government is also establishing a system to identify people facing economic crises early on.

This initiative is part of a broader government strategy to prevent suicides, focusing on nine key areas including support for students, managing suicide hotspots, and assisting isolated or crisis-stricken families. The push for enhanced debt support was prompted by President Lee Jae-myung's directive to identify vulnerable debtors and strengthen publicity for debt adjustment programs.

Data indicates a concerning rise in suicides linked to economic problems, with estimated deaths increasing from 3,089 in 2015 to 4,398 in 2024. These debt-related suicides now account for nearly 30% of all suicides in the country. To address this, the Korea Credit Counseling & Welfare Institute will establish the '1375' hotline, which will connect callers to services offered by courts, the Korea Legal Aid Corporation, and provide information on reporting illegal moneylending and accessing integrated financial, employment, and welfare support.

In addition to the hotline, the government plans to expand on-site consultation centers. The Korea Legal Aid Corporation is adding two more comprehensive support centers, bringing their total to 12, and the Financial Support Centers for the Financially Disadvantaged will increase from 50 to 56. Specialized models will also be developed to identify individuals in economic distress by combining financial data with non-financial information like health insurance payments, linking this with the Ministry of Health and Welfare's crisis household discovery system.

“

We are devising ways to additionally find vulnerable debtors experiencing difficulties due to debt and to strengthen publicity for debt adjustment.