KB Financial has ranked first among the top five financial groups in inclusive finance supply for the first half of this year. Shinhan Financial led in managing delinquent loans, accounting for about 40% of the total performance in debt restructuring and loan write-offs.
According to the Financial Services Commission on July 12, the top five financial groups—KB, Shinhan, Hana, Woori, and NH Nonghyup—supplied a total of 11.2912 trillion won in inclusive finance during the first half of the year. The target for supply from 2026 to 2030 is set at 70.7672 trillion won.
KB Financial topped the supply figures with 2.4883 trillion won, followed closely by Shinhan Financial with 2.42 trillion won. NH Nonghyup, Hana, and Woori Financial also each supplied over 2 trillion won.
Shinhan Financial's impact was particularly notable in managing delinquent loans. The company restructured 813.6 billion won in delinquent loans and wrote off or completed the statute of limitations on 719.4 billion won in loans. Combined, this totals 1.533 trillion won, representing over 40% of the total delinquent loan management performance among the top five financial groups.
Shinhan Financial has expanded its approach beyond merely recovering delinquent loans, focusing on supporting vulnerable borrowers, including the elderly and low-income individuals. The company has shifted its review process to assess all loans that have been overdue for a certain period, rather than only those nearing the statute of limitations.
KB Financial is also concentrating on helping borrowers achieve actual recovery. Through a dedicated non-face-to-face debt restructuring team, the company enables borrowers who cannot visit in person to handle consultations and execution in one go. Additionally, it collaborates with the Credit Recovery Committee to provide counseling for borrowers experiencing psychological distress due to financial difficulties.
The inclusive finance strategies vary among the financial groups. Hana Financial has introduced a mid-interest loan with a fixed rate of 5.5% for those in the bottom 50% of credit scores, while Woori Financial is promoting a refinancing product that allows borrowers to switch from secondary financial institution loans to bank loans. NH Nonghyup is expanding products aimed at specific regional and demographic needs, targeting farmers, young residents, and diligent repayers of debt restructuring.
Although Woori Financial had the lowest absolute supply amount at 2.1 trillion won, it achieved the highest progress rate against its five-year target of 7.4 trillion won, reaching 28.4% in the first half.
The competition in inclusive finance among financial institutions is expected to broaden, focusing not only on new fund supply but also on debt restructuring, loan write-offs, refinancing, and credit recovery support. The Financial Services Commission plans to move away from performance management based solely on supply amounts and introduce a comprehensive evaluation system for inclusive finance, designating dedicated chief officers for each financial group.
* This article has been translated by AI.
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