Effectiveness of debt modification system in Korea

Kye moon Lee and Junesuh Yi

Journal of Derivatives and Quantitative Studies: 선물연구, 2023, vol. 31, issue 4, 262-277

Abstract: - This study aims to examine the effectiveness of the debt modification system (DMS) in Korea. We find that DMS does have a positive effect in increasing the credit scores and annual income of DMS users. We also find that a debt management plan (DMP) is more effective in raising credit scores than personal rehabilitation (PR). However, the credit scores of DMS users in the first half of 2019 (551.1–626.1 points) are at a very low level, making it difficult to access low-interest unsecured loans from banks. Therefore, DMS in Kores is still insufficient to support the return of debt-ridden consumers to normal financial life and provide opportunities for a fresh start.

Keywords: Debt modification system; Personal rehabilitation (Chapter 13); Debt management plan (DMP); Fresh start; Credit score; G18; G20; G28 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:jdqspp:jdqs-02-2023-0003

DOI: 10.1108/JDQS-02-2023-0003

Access Statistics for this article

More articles in Journal of Derivatives and Quantitative Studies: 선물연구 from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().