A 'split transfer' system will be introduced, under which any amount exceeding 2.5 million won deposited into a living expense account will be automatically transferred to another account. This is expected to reduce the inconvenience of users having to check their remaining deposit limit each time or split their salary across multiple accounts.

Living Expense Accounts... Up to 2.5 Million Won Per Month, Seizure Prohibited

The Ministry of Justice has prepared an amendment to the enforcement decree of the Civil Execution Act, which stipulates that amounts exceeding the limit of a living expense account will be automatically transferred to a separate management account.

A living expense account is designed to protect the basic livelihood of debtors and their families. Under current standards, up to 2.5 million won can be deposited per month, and deposits in the account are protected from seizure. Accounts can be opened at various financial institutions, including domestic commercial and regional banks, and each person may open only one across all financial institutions. According to Ministry of Justice data, as of June 23, 2026, the number of living expense accounts opened stood at 531,174.

Problems with the Current System... The Entire Transfer Amount May Not Be Deposited

Under the current system, neither the deposit balance nor the monthly cumulative deposit amount of a living expense account may exceed 2.5 million won. For example, if 2 million won has already been deposited into a living expense account and an additional 1 million won is to be transferred, the remaining limit is 500,000 won. However, under the current method, rather than 500,000 won being deposited with the other 500,000 won automatically going into another account, there is a problem in which the entire transfer amount may not be deposited.

Workers whose monthly salary exceeds 2.5 million won also found it inconvenient to use a living expense account as their salary account. Because they could not receive their full salary at once, they had to receive their salary in another general account and then transfer only the remaining limit to the living expense account, or split their salary among multiple accounts from the outset.

Amounts Exceeding the Limit to Be Automatically Transferred to a 'Management Account'

To reduce these inconveniences, the government is introducing a 'split transfer' method. If a user designates one of their demand deposit accounts at the financial institution where they opened the living expense account as a 'management account,' deposits up to the living expense account limit will go into the existing living expense account, while amounts exceeding the 2.5 million won limit will be automatically transferred to the management account.

For instance, if 1 million won is additionally transferred when 2 million won is already in a living expense account, the remaining 500,000 won up to the limit will go into the living expense account, and the other 500,000 won will be sent to the pre-designated management account. This is expected to considerably reduce the inconvenience of users having to calculate the remaining limit of their living expense accounts themselves.

Full Refund If No Management Account Is Designated or If Transactions Are Suspended... Advance Confirmation Essential

However, if no management account has been designated in advance, or if the designated management account is unable to receive deposits normally due to a transaction suspension or similar issue, the processing method differs. In such cases, rather than only the excess amount being returned, the entire amount intended for deposit into the living expense account will be returned to the sender. Therefore, to use the split transfer function, users need to confirm whether a management account has been designated and whether the account is in normal transaction status.

Effective January 1, 2027... Existing Users Can Also Use It After Completing Procedures

The split transfer system is scheduled to take effect on January 1, 2027. Existing living expense account users can also use the split transfer function after the system takes effect, by completing the financial institution's terms-of-service renewal and management account designation procedures.

Seizure Prohibition Limit Itself Unchanged... Excess Amounts Not Protected

The key point is that the seizure prohibition limit for living expense accounts itself is not being raised. The living expense limit protected under current standards is 2.5 million won per month, and the new system is essentially a convenience feature that automatically sends amounts exceeding 2.5 million won to a separate account. Therefore, it should not be interpreted that the excess amounts transferred to the management account are protected from seizure in the same way as the living expense account. The seizure prohibition protection applies only to amounts lawfully deposited in the living expense account.

The Ministry of Justice expects that this system improvement will make it easier to use living expense accounts as salary accounts and the like, and will also reduce the inconvenience of users having to check their remaining limit every time.

[The actual implementation date, detailed procedures, and applicable standards may change depending on the finally enacted laws and financial institution guidance, so users must check the latest guidance from the relevant authorities and financial institutions before use. AI assisted with organizing materials and structuring sentences in the writing of this article.]