Settled
Korea to auto-split over-limit deposits in livelihood accounts from 2027
In short
South Korea's cabinet approved an amendment to the enforcement decree of the Civil Execution Act on Oct 6, letting money above the 2.5 million won monthly limit on a seizure-protected “livelihood account” be sent automatically to a separate account the user designates. The change takes effect Jan 1, 2027. The Justice Ministry said 687,241 such accounts had been opened at 56 financial institutions as of Sept 15.
Why it matters
The livelihood account is aimed at debtors whose minimum living expenses are protected from seizure, and the change is meant to make the account usable as a salary or regular deposit account. For readers outside Korea it is a domestic procedural change, with the ministry estimating it protects up to about 1.7181 trillion won in living expenses each month.
Key facts
- The Justice Ministry said the cabinet approved an amendment to the enforcement decree of the Civil Execution Act on Oct 6. [ 1 , 2 , 3 ]
- The amended decree takes effect Jan 1, 2027. [ 1 , 2 ]
- A livelihood account blocks seizure of living expenses up to 2.5 million won a month and one account can be opened per person. [ 1 , 2 , 3 ]
- Under the change, amounts above the limit are automatically deposited into a separate “management account” the user designates. [ 1 , 2 , 3 ]
- If no management account is designated or it cannot be used, the whole deposit is returned to the sender as before. [ 1 , 2 , 3 ]
- Existing account holders can use the new system after renewing their terms and designating a management account. [ 1 , 2 ]
- As of Sept 15, 687,241 livelihood accounts had been opened at 56 financial institutions, according to the Justice Ministry. [ 1 , 2 ]
Confirmed by several sources
- The cabinet approved the amendment to the enforcement decree of the Civil Execution Act on Oct 6 and it takes effect Jan 1, 2027. [ 1 , 2 , 3 ]
- Amounts above the 2.5 million won limit will be automatically deposited into a management account designated by the user, with the within-limit portion going to the livelihood account. [ 1 , 2 , 3 ]
- If a management account is not designated or normal transactions on it are impossible, the full deposit is returned. [ 1 , 2 , 3 ]
- The Justice Ministry said the measure is intended to let economically vulnerable people secure minimum living expenses without fear of seizure. [ 1 , 2 , 3 ]
Still unclear
- The number of livelihood accounts opened so far Seoul Economic Daily and Yonhap both report 687,241 accounts as of Sept 15, while Newsis describes “more than 68,000” accounts at 56 financial institutions over eight months, a much smaller and ambiguously written figure.
- When exactly on Oct 6 the cabinet meeting took place The documents give the date of the cabinet decision but no time for the meeting itself.
What local media are saying
Business mediaBusiness outlets focused on the mechanics of the change and the inconvenience it removes, explaining the limit, the new management account and what happens if none is designated, and citing the ministry's account-opening and protected-amount figures.
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Official sourcesThe official wire service reported the cabinet decision, the Jan 1, 2027 start date, the 2.5 million won monthly limit and the ministry's estimate that up to 1.7181 trillion won in living expenses is protected each month, with the ministry's statement in full.
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Timeline, local time
- Seoul Economic Daily reports the cabinet approved the amendment and details the automatic split-transfer system starting next year. [ 1 ]
- Yonhap reports the same cabinet decision and the ministry's figures on accounts opened and protected living expenses. [ 2 ]
- Newsis reports the change, describing the previous system under which deposits over 2.5 million won were rejected in full. [ 3 ]
- Amended enforcement decree takes effect on Jan 1, 2027. [ 1 , 2 ]