BNK Gyeongnam Bank and Gyeongnam Province "Wishing a New Start for Socially Vulnerable Groups"

Preventing Financial Activity Contraction Due to Prolonged COVID-19
Agreement Signed for Non-Performing Loan Relief Program

BNK Gyeongnam Bank signed a business agreement with Gyeongsangnam-do for the "Bad Debt Forgiveness Program to Support a New Start for Socially Vulnerable Groups in the Gyeongnam Region."

[Asia Economy Yeongnam Reporting Headquarters Reporter Song Jong-gu] BNK Gyeongnam Bank and Gyeongsangnam-do deliver a ray of hope to socially vulnerable groups classified as defaulters.

On the 17th, BNK Gyeongnam Bank signed a business agreement with Gyeongsangnam-do for the ‘Gyeongnam Region Socially Vulnerable Groups New Start Hope Non-Performing Loan (NPL) Forgiveness Program’.

Kim Ji-wan, Chairman of BNK Financial Group, and Choi Hong-young, President of BNK Gyeongnam Bank, visited the provincial office on the same day and held the ‘Gyeongnam Region Socially Vulnerable Groups New Start Hope NPL Forgiveness Program Business Agreement Ceremony’ with Governor Park Wan-su.

According to the agreement, the two institutions decided to carry out the NPL forgiveness program to prevent the contraction of financial activities among socially vulnerable groups in the province due to the prolonged COVID-19 pandemic and to provide a foundation for recovery.

In particular, BNK Gyeongnam Bank plans to establish detailed plans for the NPL forgiveness program and forgive a total of 25 billion KRW worth of non-performing loans over three years until 2024.

The province will promote the NPL forgiveness program within the province and provide administrative support.

The target of the NPL forgiveness program is socially vulnerable groups (basic livelihood security recipients, lower-income brackets, basic pension recipients, etc.) who hold non-performing loans with low recovery prospects due to lack of repayment ability and for which the statute of limitations has expired.

The non-performing loans that fall under the target will be extinguished without extension of the period due to the completion of the statute of limitations, thereby eliminating personal debt.

President Choi said, “Being classified as a defaulter due to inability to repay debts imposes many restrictions on financial transactions and economic activities. We signed this agreement with Gyeongsangnam-do to provide an opportunity for socially vulnerable groups suffering from long-term debt to make a fresh start. BNK Gyeongnam Bank will continue to actively implement policies supporting low-income finance and fulfill its social responsibilities.”

A BNK Gyeongnam Bank official emphasized, “This agreement is the first of its kind in the financial sector, signed with Gyeongsangnam-do in line with the government’s ‘Financial Livelihood Stabilization Measures.’”

Meanwhile, BNK Financial Group, including BNK Gyeongnam Bank, BNK Busan Bank, BNK Capital, and BNK Savings Bank, is conducting the ‘Crisis Overcoming Companion (同行) Project’ to support local self-employed businesses and vulnerable groups with a total scale of 14.7205 trillion KRW over three years.

The Crisis Overcoming Companion (同行) Project consists of ▲Low-Income Financial Support Program ▲Vulnerable Groups Support Program ▲Recovery Support Program.

The ‘Gyeongnam Region Socially Vulnerable Groups New Start Hope NPL Forgiveness Program Business Agreement’ signed between BNK Gyeongnam Bank and Gyeongsangnam-do belongs to the Recovery Support Program within the Crisis Overcoming Companion (同行) Project.

This content was produced with the assistance of AI translation services.