Creditors Can’t Touch This Money: Korea Unveils New ‘Living Expense Account’

South Korea will introduce a new “Living Expense Account” designed to protect a minimum level of household funds from seizure, allowing debtors to secure basic living costs even under enforcement proceedings.

The Ministry of Justice announced Monday that a revised Enforcement Decree of the Civil Execution Act was approved at a Cabinet meeting. Under the new rules, eligible individuals will be able to open the protected account starting February 1.

The Living Expense Account allows debtors to deposit and use up to 2.5 million won per month without the risk of seizure by creditors. The protected amount is fully exempt from attachment, ensuring uninterrupted access to essential living funds.

Previously, even accounts used for daily expenses could be seized, forcing debtors to undergo separate legal procedures to access money needed for basic necessities. The ministry said the new system was created to eliminate that burden by blocking seizure of minimum living expenses from the outset.

To prevent excessive protection through repeated transactions, the monthly cumulative deposit limit is capped at 2.5 million won. In addition, if the total balance of the Living Expense Account plus cash holdings does not exceed 2.5 million won, deposits in other regular accounts will also be protected up to the remaining amount.

Under the revised decree, one account per person may be opened at commercial banks, regional banks, online-only banks, savings banks, agricultural and fisheries cooperatives, credit unions, and post offices nationwide.

The amendment also raises other seizure protection thresholds. The minimum non-seizable portion of wage income will increase from 1.85 million won to 2.5 million won per month. Protection limits for insurance payouts have also been expanded: death benefits are now protected up to 15 million won, while maturity and surrender values are protected up to 2.5 million won.

The revised standards will apply to seizure applications filed on or after February 1.

Justice Minister Jeong Seong-ho said the reform aims to safeguard the livelihoods of debtors and their families and to support the economic recovery of vulnerable groups, including small business owners and young people.

Glossary — Living Expense Account

A bank account that creditors are legally prohibited from seizing, allowing debtors to freely use up to 2.5 million won per month for basic living expenses. Accounts can be opened starting February 1 at domestic banks, savings banks, and post offices.