The National Agricultural Cooperative Federation will write off 887.6 billion won in long-term delinquent debt to support vulnerable groups. About 90,000 borrowers are expected to benefit.
The National Agricultural Cooperative Federation said Sunday that NH Nonghyup Bank, regional agricultural and livestock cooperatives nationwide, and Nonghyup Asset Management will pursue a 887.6 billion won long-term delinquent debt cleanup program this year. This is the largest scale among programs announced by major financial groups this year.
Specifically, the federation plans to write off 687 billion won in long-term delinquent debt, easing the collection burden for about 64,000 people. By institution, Nonghyup Bank accounts for 287 billion won, mutual finance 150 billion won, and Nonghyup Asset Management 250 billion won. Nonghyup had already written off debt worth 178.5 billion won through last month.
A principal and interest reduction program worth 200.6 billion won will also be implemented, targeting debt delinquent for three years or more held by socially disadvantaged groups such as the elderly and basic livelihood recipients. Under the program, principal will be reduced by up to 90 percent and unpaid interest will be fully exempted. The program will run for one year starting in July. About 26,000 people are expected to benefit.
Nonghyup is also accelerating its expansion of inclusive finance. This year's inclusive finance target is 2.7787 trillion won, of which 1.8324 trillion won had been executed as of the end of May, recording a progress rate of 65.9 percent. The federation plans to supply more than 15 trillion won in inclusive finance over the next five years.
To expand inclusive finance, Nonghyup is also pursuing field-centered support measures. At 1,109 agricultural and livestock cooperatives nationwide, the "Nongsim Cheonsim Hope Loan" with interest rates in the 2 percent range is being offered for farmers and young farmers. The federation also plans to set up "Inclusive Finance Companion Counters" at regional agricultural and livestock cooperatives to improve financial access for vulnerable groups such as the elderly and people with disabilities.
NH Nonghyup Bank also operates a "Credit Recovery Partner Loan" for borrowers undergoing credit recovery procedures. The product provides up to 1 million won in recovery funds within a total limit of 30 billion won. This month, the bank plans to launch the "NH Youth Regional Return Loan," which eases the housing and living cost burden for young people relocating to provincial areas.
