KB Kookmin Bank is implementing a debt relief program worth approximately 280 billion won to ease the financial burden on vulnerable populations.
The bank announced Wednesday it will provide special debt forgiveness totaling 278.5 billion won to 12,433 borrowers in vulnerable circumstances. The program will reduce principal on medium and short-term delinquent loans while writing off long-term delinquent debts entirely.
Eligible borrowers are those with loans of 50 million won or less who have been delinquent for more than five years. The program also covers borrowers subject to debt restructuring under the Personal Debtor Protection Act. Young borrowers aged 34 and under will receive relief as well, aimed at easing the burden on those whose delinquencies have extended due to student loans and delayed employment.
KB Kookmin Bank will accept applications through June and forgive up to 90% of principal. For 2,074 borrowers with unpaid interest exceeding five years, remaining debts will be written off immediately.
The bank expects the measure to help vulnerable borrowers restore their credit and gain access to mainstream financial services. The initiative also aligns with the government's inclusive finance policy aimed at alleviating financial burdens on vulnerable populations.
KB Kookmin Bank said it will continue to settle long-term delinquent loans rather than mechanically extending their statute of limitations. The bank has written off 277.9 billion won in loans over the past three years.