NongHyup to Forgive 887.6 Billion Won in Delinquent Loans, Support 90,000 Vulnerable Individuals

NongHyup will forgive 887.6 billion won in delinquent loans to support vulnerable populations. Additionally, the organization plans to provide over 15 trillion won in inclusive finance over the next five years to expand financial support for low-income individuals and farmers.

On June 15, the NongHyup Central Association announced that it will forgive and write off a total of 887.6 billion won in long-term delinquent loans this year, aligning with the government's inclusive finance policy. This initiative aims to assist approximately 90,000 vulnerable individuals in their recovery.

NongHyup plans to write off 687 billion won in long-term delinquent loans this year, relieving 64,000 individuals from collection burdens and supporting credit recovery. The breakdown by subsidiary includes 287 billion won from NongHyup Bank, 150 billion won from agricultural and livestock cooperatives, and 250 billion won from NongHyup Asset Management. As of last month, 178.5 billion won in long-term delinquent loans had already been written off, with an additional 508.5 billion won planned for the end of the year.

Furthermore, NongHyup will reduce the principal and interest on loans that have been delinquent for over three years, targeting socially vulnerable groups such as the elderly and basic livelihood recipients, amounting to 200.6 billion won. The principal will be reduced by up to 90%, and all unpaid interest will be waived to encourage diligent repayment and improve credit ratings for delinquent borrowers.

Currently, NongHyup has established a plan to provide 15.3 trillion won in inclusive finance over the next five years. This support will focus on loans for small businesses and self-employed individuals totaling 8.5 trillion won, as well as 6.8 trillion won for low-income and vulnerable groups.

NongHyup Central Association Chairman Kang Ho-dong stated, "The write-off and forgiveness of long-term delinquent loans is part of our commitment to inclusive finance, bringing hope for recovery to those who have faced economic hardship for a long time. We will continue to expand inclusive finance across NongHyup to strengthen our public interest role and fulfill our social responsibilities."