About 1.3 million people have opened accounts designed to shield pensions and basic living benefits from creditors, as more South Koreans turn to the accounts as a financial last resort amid mounting debt.
As of the end of June, subscribers to seizure-proof accounts at major commercial and internet-only banks totaled 1,297,594, according to data the Financial Supervisory Service (FSS) submitted to the office of Rep. Park Sang-hyuk of the Democratic Party on the 16th. Subscribers at the eight established banks exceeded 1.18 million, while Kakao Bank and Toss Bank, which launched the product this year, together added about 110,000 new account holders.
By bank, NH NongHyup Bank ranked first with about 320,000 subscribers, followed by Woori Bank, KB Kookmin Bank, Shinhan Bank and Hana Bank. Kakao Bank drew more than 106,000 subscribers in the six months since its launch, the fastest growth among the internet-only banks.
Balances have climbed to just under 1 trillion won. Total balances stood at 952.2 billion won ($688 million), led by KB Kookmin Bank at 220.7 billion won, followed by NH NongHyup Bank, Shinhan Bank and Woori Bank.
The pace of new sign-ups accelerated noticeably this year. New subscriptions in the first half alone reached 361,373, exceeding 2.5 times the eight established banks' total new sign-ups for all of last year in just six months. Cancellations over the same period were about 20,800, meaning new subscriptions outnumbered cancellations by more than 17 to one.
Seizure-proof accounts are special accounts that protect funds legally exempt from seizure — such as basic livelihood benefits, basic pensions and various public pensions — from enforced collection by creditors. The rise in demand is attributed to lower access barriers following the internet banks' launch, along with a heavier debt burden as high interest rates persist, prompting more people to safeguard their livelihoods.
Rep. Park said the figures confirm the impact of inclusive-finance policies that lowered barriers to entry. "There is a need to continuously improve the system so that more vulnerable groups can benefit from the financial safety net," Park said.
