Gov’t to exempt up to 90 pct of overdue communication fees for low-income earners

The government will exempt up to 90 percent of overdue communication fees of low-income earners to help them resume their economic activities, the financial regulator said Thursday. People with unpaid or overdue fees are unable to open communication service accounts under their own names, which may prevent them from finding jobs or starting new businesses, according to the Financial Services Commission (FSC). Under the new program, launched jointly with the Ministry of Science and ICT, those with overdue fees may open service accounts after paying their late fees for three consecutive months. Their existing charges will be reduced by 30 to 90 percent, depending on the applicant's current income level, and may be paid in monthly installments over a maximum period of 10 years. For instance, a person with 300,000 won (US$217) in overdue charges may have the fees reduced to 30,000 won that can be paid over 10 years in monthly installments of 250 won, according to Kim Jheen-hong, head of the FSC's Financial Co nsumer Bureau. "One of the key aspects of this is that the Credit Counseling and Recovery Service, which has only helped readjust financial debts, will now help readjust late communication fees," Kim told reporters. Kim explained that the program was made possible by the fresh participation of the three mobile service providers in the debt restructuring program by the Credit Counseling and Recovery Service. "And late fee recovery efforts will halt as soon as the user applies for debt-restructuring by the Credit Counseling and Recovery Service," he added. The government had deleted the overdue loan repayment records of nearly 3 million people in January, prompting concerns that such moves may boost moral hazard among the people. As of end-2023, some 370,000 people owed 50 billion won in late communication service fees, according to the FSC. The FSC official said the government will thoroughly examine people's wealth and income when offering late fee reductions. Source: Yonhap News Agency