Korea Federation of Savings Banks "Writing off 136 Billion Won in Non-Performing Loans"

Sale to Woori Financial, Hana, and Kiwoom F&I by June

The Korea Federation of Savings Banks is promoting the joint sale of non-performing loans to support the soundness management of savings banks.

According to the Korea Federation of Savings Banks on the 2nd, 18 savings banks plan to resolve approximately 136 billion KRW worth of personal (unsecured) and individual business non-performing loans. The bidding was held on the 28th of last month, and a sales contract is scheduled to be signed by the end of this month with Woori Financial Group, Hana, and Kiwoom F&I as buyers.

Among the 79 domestic savings banks, non-performing loans (classified as substandard or below) that are deemed difficult to recover exceed 10 trillion KRW. According to the Korea Federation of Savings Banks, in the first quarter of this year, the total loan balance and the ratio of substandard or below loans for all savings banks were 101.3 trillion KRW and 10.32%, respectively. Substandard or below loans refer to loans overdue for more than three months and are highly likely to be defaulted.

A representative from the Korea Federation of Savings Banks stated, “Through this joint sale, the savings bank industry has secured a new channel to resolve non-performing loans,” adding, “We will continue to utilize the joint sale method as part of soundness management to resolve non-performing loans in the future.”