What Changes in Personal Rehabilitation in 2026: Living Expenses and New Rehabilitation Courts

The biggest change in personal rehabilitation (gaein hoesaeng) in 2026 is the living expense standard. On top of this come recognition of additional living expenses, new rehabilitation courts, early deletion of public records and simpler paperwork. We have selected only the changes that directly affect personal rehabilitation, and the content is as of early 2026.

Higher living expenses and why repayments change

The key standard for setting personal rehabilitation repayments is living expenses. This is because the monthly repayment is calculated as income minus living expenses and any additionally recognized other living expenses.

The 2026 living expense standard for one person is KRW 1,538,543, about KRW 100,000 higher than about KRW 1.43 million in 2025. For calculation purposes you can use about KRW 1.55 million. By household size, the figures are roughly as follows.

This standard applies about 60% of the standard median income set by the Ministry of Health and Welfare.

When living expenses rise, monthly repayments fall even at the same income. So when deciding when to file, it is good to also check when that year's living expense standard changes. However, if the case involves the liquidation value guarantee, you cannot decide the timing by looking at living expenses alone.

Additional living expenses for people with higher income

A concept newly introduced from 2025 is additional living expenses. It arose from the concern that applying the same living expenses to someone earning KRW 2 million a month and someone earning KRW 4 million would not be fair, so a system was created to recognize more living expenses for people with higher incomes.

As of 2026, the standard median income for one person is about KRW 2.56 million, and 150% of that is about KRW 3.84 million. If your take-home pay is KRW 3.84 million or more a month, the chance of having additional living expenses recognized increases. In 2026, recognition of additional living expenses was expected to become more established and the procedure relatively easier.

New rehabilitation courts in Daejeon, Daegu and Gwangju

From March 2026, it was decided that new rehabilitation courts would be established in Daejeon, Daegu and Gwangju. Before that, the Seoul Bankruptcy Court handled rehabilitation cases exclusively in Seoul, and in the provinces bankruptcy divisions within ordinary courts handled them.

With the new rehabilitation courts, rehabilitation cases will be handled by dedicated courts in the regions as well. Two effects are expected.

• The Seoul Bankruptcy Court's practice standards will be reflected quickly in the regions.
• Practices that were strict in some regions may ease.

Early deletion of public records after one year of faithful repayment

This change is already in effect, but many people do not know about it. When you go through personal rehabilitation, public record information indicating that rehabilitation is in progress is registered with Korea Credit Information Services. In the past, this information remained until discharge, roughly three years. Now, if you repay faithfully for one year, the public record is deleted, and this is reported to happen without a separate application.

However, deletion of the public record does not mean your credit is fully restored. Card companies and financial companies keep their own internal delinquency information, so card issuance and loans may still be restricted. Even so, the disadvantages caused by the public record are reduced considerably.

Simpler paperwork to ease the burden of debt certificates

One of the most tedious tasks in filing for personal rehabilitation is obtaining debt certificates. You have to visit each creditor, bring your registered seal, seal certificate and power of attorney, pay agency fees, and wait one to two weeks.

The court has announced that it plans to introduce a system that confirms debts based on MyData. This has been discussed for a long time, but it may actually take hold in 2026, and if it does, both cost and time can be saved.

Summary of 2026 changes in personal rehabilitation

• Living expenses: up by about KRW 100,000 for one person
• Wider recognition of additional living expenses
• New rehabilitation courts in Daejeon, Daegu and Gwangju
• Early deletion of public records: after one year of faithful repayment
• Push for simpler paperwork: expected reduction in the burden of debt certificates

Personal rehabilitation is a system whose results differ depending on when you file. Rushing is not always the answer, so decide on the timing while also considering the changes coming in 2026.

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Last reviewed: 2026-10-19 This article provides general legal information; specific advice is given through consultation.