If you’re being pressed for a debt but don’t know the principal or how the interest built up, start by asking for a debt confirmation letter. Article 5 of Korea’s Fair Debt Collection Act says that lenders, banks and similar collectors asked by a debtor for documents proving the debt — principal, interest, costs, due date — must comply unless there is good reason not to. The Decree caps the fee at ₩10,000, and refusing carries a fine of up to ₩20 million. An itemised cost statement is free, and an agency collecting on a mandate must give written notice of the mandate before starting. While a lawsuit disputing the debt is under way the debtor can’t be registered as a defaulter, and an existing registration must be deleted within 30 days; there’s a deadline calculator below.
1. Confirmation letter — documents proving principal, interest, costs and due date; must be given on request (Art. 5(1)). Fee within ₩10,000 (Decree Art. 1-2).
2. Cost statement — without delay, free (Art. 13-2; Decree Art. 3).
3. Refusal: fine up to ₩20 million; no cost statement: up to ₩10 million (Art. 17).
The confirmation letter — Art. 5, Decree Art. 1-2
| Type | What the source says | Worth noting (ours) |
|---|---|---|
| Who must give it | Collectors under Art. 2(1)(a) — money lenders and brokers, illegal private lenders, credit financial institutions, and assignees of their loans | Private lenders and agencies aren’t bound by this article (our reading) |
| What | Documents proving the debt: principal, interest, costs, due date and the like | — |
| When | On the debtor’s request, unless there is good reason | No day count in the Act |
| Fee | Costs directly incurred, up to ₩10,000 | Decree Art. 1-2 |
| Breach | Fine up to ₩20 million (Art. 17(1)1) | Not halved (Art. 17(4)) |
The letter is the starting point for checking principal and interest and the date the benefit of time was lost. Where late interest applies is in overdue interest limit calculator (our link).
Cost statements and collection costs — Arts. 13, 13-2; Decree Arts. 2–3
| Type | What the source says | Worth noting (ours) |
|---|---|---|
| Costs that may be charged | (1) Costs the debtor or related persons agreed to bear before the due date (2) actual costs of the confirmation letter (within ₩10,000) (3) other costs fairly borne by the debtor | Decree Art. 2 |
| Banned | Costs not owed or above what was actually spent | Art. 13(1) |
| Cost statement | Debtors and related persons may ask for costs itemised; it must be given without delay and free of charge | Businesses: Act Art. 13-2; others: Decree Art. 3 |
| Breach | Improper costs: fine up to ₩10 million (₩5 million for non-businesses); no statement: up to ₩10 million | Art. 17(2)6–7, 17(4) |
Mandate notice and double mandates — Arts. 6–7
| Type | What the source says | Worth noting (ours) |
|---|---|---|
| Who | Art. 2(1)(d) — those paid to collect others’ debts, and their staff | Collection agencies |
| When | Before starting collection on a mandate; where the contract has a benefit-of-time clause, immediately after it is lost; for ongoing service contracts, immediately on termination | Not needed if the debtor agrees |
| How | In writing (electronic documents included) | — |
| What | (1) Collector’s name and contact (for a company, the handler’s) (2) creditor’s name, amount owed, period in default (3) account number and name for payment | Check the account belongs to the creditor (ours) |
| Double mandates | No mandating two or more collectors for the same debt at once (Art. 7) | — |
| Breach | No notice: fine up to ₩10 million; double mandate up to ₩10 million (₩5 million for non-businesses) | Art. 17(2)1–2 |
No defaulter registration during a lawsuit — Art. 8
While a debtor’s lawsuit disputing the debt is under way, collectors under items (a) and (d) may not register the debtor as a defaulter with a credit information concentration agency or credit information company. If already registered, the entry must be deleted within 30 days of learning of the lawsuit; breach carries a fine of up to ₩10 million (Art. 17(2)3). The calculator below counts the 30 days.
Deletion deadline calculator
Updates as you type. Counting from the day after (Civil Act Art. 157) and moving a weekend last day to Monday (Art. 161) is our reading; the Act says only “within 30 days from the date of learning”.
Worked examples — ours
| Date learned (our example) | Delete by | Worth noting (our sum) |
|---|---|---|
| Wed 4 November 2026 | Fri 4 December | 5 November is day 1; day 30 is 4 December |
| Fri 6 November 2026 | Mon 7 December | Day 30, 6 December, is a Sunday → Monday (our reading) |
If you appoint a lawyer — Art. 8-2
Once the debtor appoints a lawyer, law firm or law partnership and gives written notice, the collector may not visit or contact the debtor about the debt (fine up to ₩20 million). But the article excludes credit financial institutions, collection companies, asset managers, ordinary money lenders and their staff or agents (money lending businesses excepted), so it mainly reaches lenders and illegal private lenders (our reading). The full list of banned acts is in illegal debt collection checker.
Making the request — our note
The Act doesn’t set a form. To show when you asked, a method that leaves a date — text, email or certified mail — helps. Ask for the confirmation letter and the cost statement together, and if an agency is collecting, check that the account in its mandate notice belongs to the creditor. If you plan to ask for debt adjustment, these papers are the basis for it.
Checklist
- ☐ Ask for a confirmation letter (principal, interest, costs, due date) — fee within ₩10,000
- ☐ Ask for a cost statement — free
- ☐ For an agency, check the mandate notice (creditor, amount, account)
- ☐ If a lawsuit disputes the debt, check for defaulter registration and the 30-day deletion
- ☐ Use a method that records the date
Questions that remain
How many days do they have to send it?
Article 5 says only that they “shall comply unless there is good reason”; it sets no day count. For cost statements, Art. 13-2 says “without delay”.
Can I ask a private individual lender for one?
Article 5 binds only collectors under Art. 2(1)(a), so we read the duty and fine as not applying to private lenders.
Sources
- Korean law database (law.go.kr) — Fair Debt Collection Act Arts. 2, 5–8-2, 13, 13-2, 17 — source (current text, effective 2 October 2026, Act No. 21490; checked 4 November 2026). Who collects, confirmation letters, the three mandate-notice items and timing, double mandates, no registration during lawsuits and 30-day deletion, no contact after a lawyer is appointed and its exclusions, improper costs and statements, fines and halving.
- Korean law database — Enforcement Decree Arts. 1-2 to 4 — source (effective 21 November 2014, Decree No. 25763; checked 4 November 2026). ₩10,000 fee cap, three kinds of chargeable costs, statements from non-businesses, fine adjustment.
- Korean law database — Civil Act Arts. 157, 161 — source (effective 17 March 2026, Act No. 21454; checked 4 November 2026). First day excluded; Saturday or holiday moves to the next day — the basis of our reading in the calculator.
- Not read. The Decree’s fine schedule, the Credit Information Act’s registration criteria, case law, debt adjustment documents under the Individual Debtor Protection Act.
- What we added. The “worth noting” column and the Korean everyday gloss.
Where to check further
- Your loan contract — costs agreed before the due date, benefit-of-time clause.
- The collection notice — creditor, agency, payment account.
Written on 4 November 2026. The content is from the source; the glosses are ours.
