South Korea’s Financial Services Commission (FSC) is moving forward with the launch of two recent credit card products designed to support individuals and minor business owners undergoing debt restructuring, officials said February 9, 2026. The “re-establishment support cards” aim to provide limited credit access to those previously excluded from mainstream financial services.
The initiative, first announced in December 2025 as part of the FSC’s broader financial inclusion efforts, will offer two distinct card types. The first, a “re-establishment post-paid transportation card,” will provide check-card based post-paid functionality for public transportation to individuals currently in debt adjustment programs. The second, a “small business 햇살론 card,” will allow credit access to the bottom 50% of small business owners for small-scale purchases, according to the FSC.
“These cards are a step towards restoring the daily lives of those undergoing debt restructuring,” said Kwon Dae-young, Vice Chairman of the FSC, following a review of the program’s preparation with card companies. Applications for the small business card will be accepted starting February 20, 2026, through the Korea Deposit Insurance Corporation. The post-paid transportation card will be available for application through card companies beginning March 23, 2026.
The move comes amid growing concerns about the increasing number of individuals and businesses struggling with debt following the COVID-19 pandemic. The FSC hopes the cards will reduce reliance on high-interest, illegal private lending and improve the quality of household debt by encouraging transactions within the formal financial system. By providing access to basic financial tools, the FSC aims to facilitate a return to economic activity and potentially pave the way for these individuals to qualify for mainstream credit products in the future.
However, the program has already sparked debate regarding potential inequities. Critics argue that the cards could create a “moral hazard” and unfairly benefit those who have not consistently met their financial obligations. Concerns have been raised that individuals who diligently repaid their debts will not receive any additional benefits, while those undergoing restructuring will gain access to credit. This disparity echoes existing criticisms of other government support programs, such as the new start fund, where some argue that those who defaulted on loans are being rewarded.
Experts point to the need for a differentiated support system that rewards responsible financial behavior. Models in countries like the United States and the United Kingdom offer potential solutions. The U.S. System involves private negotiations with creditors, court-led bankruptcy proceedings with a 3-5 year repayment plan, and credit counseling. Crucially, the U.S. System offers incentives for successful repayment, such as partial debt forgiveness and credit record improvement. The UK and Australia mandate pre-restructuring counseling, with potential for automatic principal reduction of 20-40% and credit record deletion upon successful completion of repayment plans.
The FSC has not yet announced any specific plans to address the concerns about fairness. The agency is expected to monitor the program’s implementation closely and assess its impact on both borrowers and the broader financial system. The success of the “re-establishment support cards” will likely depend on the FSC’s ability to balance the need to provide assistance to vulnerable borrowers with the imperative to maintain a fair and responsible credit market.
