IBK Industrial Bank of Korea will write off long-overdue debt claims totaling 120 billion won by the end of this year for about 5,000 long-term delinquent borrowers.

The bank said on Aug. 25 it will write off 120 billion won in long-overdue claims for about 5,000 people by December.

The measure was prepared to reduce the financial burden on vulnerable groups that have faced difficulties repaying debt for a long period and to support their economic recovery.

The bank will first write off claims worth 67.5 billion won for about 3,600 people by September.

The targets are claims that have been included in the special-claim category for more than 5 years with an outstanding balance of 5 million won or less, and claims included in the special-claim category for more than 7 years with an outstanding balance of 100 million won or less.

By December, it will additionally write off claims worth 52.5 billion won for about 1,400 people. The targets are claims included in the special-claim category for more than 5 years with an outstanding balance of 100 million won or less.

An IBK official said, "We pushed ahead with the debt write-off to support recovery for vulnerable groups struggling with long-term debt," and added, "We will continue supporting financially vulnerable groups through inclusive finance."