Shinhan Bank said on Tuesday it will provide inclusive finance support by writing off 269.4 billion won in special bonds for which it waived the statute of limitations, to protect financial consumers and help low-income and vulnerable groups restore normal financial transactions.

Banks classify loan claims they have written off as uncollectible as "special bonds" and manage them separately. Among them, special bonds for which the statute of limitations has expired but the bank did not extend it are "time-barred special bonds for which the statute of limitations was waived."

The measure aims to help groups that need social consideration get back on their feet. It covers claims that have been in special-bond status for more than 7 years and targets basic livelihood recipients, small business owners facing management crisis, people with disabilities, older people and other socially vulnerable groups, as well as debtors with claims under 20 million won.

In particular, 3,395 people will receive support, including 3,183 individuals and individual business owners and 212 guarantors who were not included in beneficiaries of the Saedo-yak Fund launched in October last year. Once the write-off registration process is completed, account payment freezes, delinquency information and legal procedures will be lifted, allowing customers to resume normal financial transactions.

Shinhan Bank also operates a simple inquiry service on its website so debtors can directly check whether they are eligible for special-bond write-offs, to strengthen customers' right to know.

Beyond this measure, Shinhan Bank runs various inclusive finance programmes to support the recovery of financially vulnerable groups such as low-income people and small business owners.

For vulnerable household loan borrowers and small business owners in management crisis, it supports tailored debt restructuring such as long-term instalment repayment and deferrals of principal repayment through programmes including the Credit Loan 119 Programme, Mortgage Pre-workout, Small Business Owner 119 Plus, Corporate Success Programme and Corporate Rebound Programme. It also provides support for closure funds and emergency operating funds for small business owners facing management crisis through programmes including Shinhan Business Closure Support Refinancing Loans and Individual Business Owner Haetsal Loan 119.

A Shinhan Bank official said the measure is inclusive finance support aimed at quickly settling claims for which the statute of limitations has been completed and providing practical help for customers to normalise financial transactions and recover economically by deleting delinquency records and stopping debt collection. The official said the bank will continue to fulfil its social responsibility in finance and expand inclusive finance so customers and society can recover and grow together.