Holding company-affiliated savings banks will undertake their own debt restructuring to support vulnerable borrowers and manage soundness.
According to the Korea Federation of Savings Banks on the 25th, eight holding company-affiliated savings banks (BNK, IBK, KB, NH, Shinhan, Woori Financial, Hana, and Korea Investment) have decided to fully waive both normal interest and overdue interest for customers approved for their own debt restructuring.
Specifically, debt restructuring support reviews will be conducted for individuals and sole proprietors who have been overdue for more than three months, and for approved customers, all accrued interest and overdue interest will be fully waived. The plan also includes adjusting the repayment schedule based on the remaining principal. However, if the adjusted repayment plan is not followed, the status will revert to the pre-adjustment state.
Holding company-affiliated savings banks will provide information on debt restructuring and the New Start Fund system support targets and benefits through online banners and pop-ups.
As of the end of last year, the delinquency rate in the savings bank sector was 6.55%, up 3.14 percentage points from 3.41% the previous year.
A representative from the Korea Federation of Savings Banks stated, "We will devise various measures to coexist with vulnerable borrowers," adding, "We will strive to maintain a sound trust relationship with ordinary citizens and small business owners."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
