KB Kookmin Bank Supports Financially Vulnerable with KRW 278.5 Billion Debt Relief Program

12,433 Individuals Including Those Aged 34 and Under Targeted
Principal Reduction and Immediate Debt Write-Off

KB Kookmin Bank announced on the 3rd that it will carry out a special debt forgiveness program amounting to a total of 278.5 billion KRW for 12,433 financially vulnerable individuals.

This measure is part of an inclusive finance policy aimed at easing the repayment burden of borrowers whose economic activities have been hampered by delinquency and supporting their re-entry into the financial market through credit recovery. For medium- and short-term delinquent loans, part of the principal will be forgiven, while for long-term delinquent loans, a write-off approach will be applied in parallel. The plan is not merely to clear bad debts, but also to facilitate the financial rehabilitation of vulnerable borrowers.

The recipients of the debt relief include: ▲ socially vulnerable individuals who have loans with a delinquency period of over five years and principal amounts of 50 million KRW or less, and ▲ debtors eligible for debt restructuring under the Personal Debtor Protection Act. Applications will be accepted until June, and after a review process, up to 90% of the principal may be forgiven.

In particular, for 2,074 borrowers with overdue interest outstanding for more than five years, the remaining debt will be immediately written off rather than using the statute of limitations waiver method.

KB Kookmin Bank has managed long-term delinquent receivables with a focus on resolution rather than simply extending the statute of limitations, and over the past three years, it has continuously reduced long-term delinquent debt by directly writing off receivables totaling 277.9 billion KRW.

The scope of this debt relief program also includes young people aged 34 or younger. It is expected to help ease the burden for young borrowers whose delinquency has become prolonged due to student loans and delays in employment.

A KB Kookmin Bank official stated, "This debt forgiveness measure is designed not just to organize non-performing loans, but to lay the groundwork for vulnerable borrowers to re-engage in economic activity," adding, "We will continue to fulfill our social responsibility as a bank by expanding practical support for vulnerable borrowers and reducing blind spots in financial support through various inclusive finance programs."

KB Kookmin Bank operates a comprehensive support system that links credit counseling and psychological counseling. At the KB Hope Finance Centers, opened in Seoul and Incheon in December last year, debt restructuring and customized credit management counseling have been provided to 1,542 delinquent borrowers so far. In addition, non-financial support, such as the Mind Care psychological counseling service, is also being provided. KB Kookmin Bank plans to expand the 'KB Hope Finance Center' to regional areas within the first half of this year to support the healthy recovery of daily life for more financially vulnerable people.

This content was produced with the assistance of AI translation services.