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Video Description

Type: KIHASA Policy Featurette

Topic: Why Households at Economic Risk Are Averse to Registering Their Addresses

Guest Speaker: Park My-yah, Director, Welfare Safety Division, Korea Social Security Information Service

Transcript

As seen in the Suwon mother-and-two-daughter case and the Sinchon-dong mother-and-daughter case, people in desperate situations often avoid registering their move-in. This is usually due to their debts, as registering their address could expose them to creditors. The main reason they keep avoiding registration is that they find the burden of repaying their debts outweigh any potential welfare benefits from registering. This is why we advocate tracking individuals at high risk of turning to private loans. For instance, some people undergo debt restructuring through organizations like the Credit Counseling and Recovery Service. However, even after restructuring, many still struggle to repay the adjusted amounts, leaving their situation unchanged―or even worse. With their credit already damaged, they are unable to secure loans from financial institutions, making it highly likely that they will turn to private loans.