Expansion of Ban on Seizure of Living Expenses – Your Bank Account is Protected

From February 1, 2026, legal safety measures that guarantee the minimum standard of living for debtors have been further strengthened. As the amendment to the Enforcement Decree of the Civil Execution Act came into effect, the minimum cost of living standard for which seizure is prohibited was significantly increased from 1.85 million won to 2.5 million won. The increase in the scope of livelihood protection by 650,000 won is expected to have a significant impact on the financial stability of not only the economically vulnerable but also general households.

The point of this revision is not limited to a simple increase in the amount. The newly introduced living expenses account, also known as the living expenses protection account system, is designed to allow all citizens, regardless of debt, to open one account per person. The amount deposited into the account is legally prohibited from being seized within a monthly limit of 2.5 million won. Previously, the structure was to receive a portion of the amount back through a separate application after the seizure had been carried out, but now it has been converted to a pre-blocking method.

The legal community assesses that this change in the system shows a shift in policy direction from a creditor-centered enforcement structure to more active protection of the debtor’s minimum livelihood rights. In particular, practical effects are expected in that regular living expenses, such as wages, pensions, and business income, can be prevented from being completely frozen due to seizure.

Cost of living protection accounts can be opened at most financial institutions, including commercial banks, post offices, and savings banks. Just bring your ID and you can apply to create a new account or convert an existing account. Accessibility has also increased as some financial companies also provide non-face-to-face conversion services through mobile apps.

However, there are some things to watch out for. If the account’s monthly cumulative deposit amount exceeds 2.5 million won, seizure protection does not apply to the excess amount. In other words, the protection limit is determined based on the accumulated amount of deposits, not on the basis of balance. If temporary large deposits are scheduled in addition to salary, a distributed management strategy with general accounts is necessary.

Experts advise that in terms of household financial management, it is advisable to use a living expenses protection account as a basic safety net, but to operate the account with a clear distinction between fixed and variable expenses. Especially in the case of multiple debtors or small business owners, understanding the system is essential because failure to manage cash flow can lead to foreclosure risk.

This revision is interpreted as a measure that reflects the policy will to guarantee a minimum humane standard of living in times of economic crisis. Creditors’ rights must also be legally protected, but it reflects the awareness that enforcement methods that deprive people of their livelihoods can increase social costs.

Ultimately, the key is awareness of the system and proactive response. Even if the law provides protection, if it is not utilized, the practical effect is bound to be limited. It is highly likely that a cost-of-living account will become a basic financial security strategy rather than an option.

Summary and Expected Effects As the minimum cost of living prohibition limit is raised to 2.5 million won, an individual’s minimum living funds are legally protected. The biggest change is that with the introduction of the cost of living protection account, there has been a shift from an ex post relief system to a proactive blocking system. The effect of strengthening household financial stability and social safety net is expected.

This system reform is a structural change that increases the effectiveness of debtor protection. A bankbook that protects the foundation of one’s livelihood has now become an essential management tool, not an option. Individuals must accurately understand the system and open an account with a financial institution as soon as possible to manage financial risks in advance.