IBK Industrial Bank of Korea said on Sunday it will launch the 'Revive Enterprise' debt restructuring programme to support long-term delinquent borrowers' return to normal economic activity in line with the government's inclusive finance policy direction.
The programme targets long-term delinquent borrowers and will run on two tracks: debt write-offs and debt restructuring.
The debt write-off track applies to borrowers with no assets who either have been classified as special claims for at least 5 years with outstanding balances of 5 million won or less, or have been classified as special claims for at least 7 years with outstanding balances of 100 million won or less. The bank plans to write off their debts in full.
It will also carry out debt restructuring for borrowers holding special claims to reduce repayment burdens.
The bank will reduce principal by varying amounts depending on how long the debt has been classified as special claims, and will restructure debts by up to 95 percent for long-term delinquents.
Jang Min-young (장민영), president of IBK Industrial Bank of Korea, said the bank would support borrowers' economic recovery through write-offs and reductions of long-term delinquent claims and help address financial blind spots.
Ji-young Lee
ljy@d-today.co.kr