President Lee Jae-myung said Tuesday that "people driven to death by debt are in fact those who cannot repay it" and that "those who would take their own lives along with their families should be granted bankruptcy discharge." Referring to a news report on a family that died by suicide due to debt, he raised his voice and asked, "Where else is there such a primitive society?"
Speaking at a Cabinet meeting and emergency economic review meeting held at the former presidential office in Cheong Wa Dae, Lee said, "Institutionally, in such cases, if they file for bankruptcy or apply for debt adjustment, the debts can all be cleared. There is no way it would not be granted to someone on the brink of death." He added, "It's not just the individuals themselves dying — entire families seem to be left abandoned," and instructed officials to "create a special body or conduct an investigation so that we no longer hear the words 'dying because of debt.' Personal debt must be systematically investigated and managed somewhere."
Lee particularly noted that "in cases where people are pushed to extremes, it is more likely to involve personal debt than debt owed to financial institutions," and asked Prime Minister Kim Min-seok to "build a system or look into this, as it is an enormous social problem." He continued, "There are many reasons for suicide, but a considerable number involve creditors. It is because our society is too harsh. In what country do people die because of debt? They can apply to the court and have it written off. They can file for bankruptcy and get a discharge."
"This is attacked as a deeply immoral act, and because it is called immoral, people suffer in silence and die. This is abnormal," Lee said. "I would like us to create a body that resolves the situation when someone reports that they cannot live because they are crushed by debt." On the purchase of long-term delinquent debts, Lee added, "Some raise concerns about moral hazard, saying people will think, 'If I hold out without repaying, I'll be exempted, so let me try to endure.' But it is impossible to hold out for years — unable to get a job, unable to open a bank account, unable to engage in economic activity — while actually having the money."
