IBK Industrial Bank to clear 120 billion won in bad debts

IBK Industrial Bank of Korea is set to resolve 120 billion won ($90 million) in long-term non-performing loans by the end of the year, impacting over 5,000 individuals struggling with chronic debt. This significant measure, announced on the 25th, aims to fundamentally alleviate the financial strain on those who have been unable to repay for extended periods.

The initiative seeks to reduce the pressure of principal and interest payments on vulnerable individuals, who have faced persistent demands and economic isolation. By clearing these debts, the bank intends to provide a foundation for these individuals to resume normal economic activities and reintegrate into society.

The debt resolution process will occur in two phases. The first phase, by September, will clear 67.5 billion won in debt for approximately 3,600 individuals. This targets loans classified as special assets for over five years with remaining principal and interest below 5 million won, or those with a balance under 100 million won after seven years. The second phase in December will address the remaining 52.5 billion won for about 1,400 people.