- Benefit
- Personal rehabilitation: for individual debtors who are unable to pay or at risk of it and have continuous income; if disposable income (after living expenses) is repaid for 3 years (up to 5) under a repayment plan approved by the court, the remainder is discharged. Debt of KRW 1 billion or less unsecured and KRW 1.5 billion or less secured; 5 years must have passed since any past discharge. Personal bankruptcy: unable to pay and income at or below a certain level; debt is extinguished on a discharge decision (7 years must have passed since a personal bankruptcy discharge and 5 years since a personal rehabilitation discharge). Taxes, fines and compensation for malicious illegal acts are not dischargeable.
- Who is eligible
- Individual debtors who are insolvent (continuous income required for personal rehabilitation)
- When to apply
- Year-round (repayment plan must be submitted within 14 days of filing for commencement)
- How to apply
- File with the rehabilitation court or main district court with jurisdiction over the debtor's address; electronic litigation (ecfs.scourt.go.kr); Credit Counseling and Recovery Service 1375
- Important notes
- After the commencement decision, repayment starts after the creditors' meeting and approval. Discharge history restricts re-filing for 5/7 years
- Note
- For bankruptcy, grounds for denying discharge such as hiding assets, wasteful spending or gambling need careful review. Personal rehabilitation is advantageous if you have income. The Credit Counseling and Recovery Service and Korea Legal Aid Corporation provide free help preparing application documents.
Based on official sources as of 2026년 10월. Amounts and requirements may change, so please confirm with the official guide before applying.