Industrial Bank of Korea (024110.KS) said on the 25th that it will write off 120 billion won ($87 million) in long-overdue debt by the end of the year. The move is expected to give about 5,000 vulnerable borrowers, who have struggled under prolonged debt collection, a chance to rebuild their finances.
The bank will first write off 67.5 billion won in debt held by about 3,600 borrowers by next month. The write-off covers debts classified as special claims for more than five years with a balance of 5 million won or less, as well as those classified for more than seven years with a balance of 100 million won or less.
By year-end, the bank will write off an additional 52.5 billion won in debt held by about 1,400 borrowers. This covers debts classified as special claims for more than five years with a balance of 100 million won or less. "This is intended to help vulnerable people who cannot escape the burden of long-term debt get back on their feet," an Industrial Bank of Korea official said. "We will continue to support marginalized neighbors by actively practicing inclusive finance."
