Shinhan Card to Sell Entire Stake in Long-term Delinquent Bonds Held by Sangnoksoo to New Leap Fund

On May 12, Shinhan Card announced that it has decided to sell the entire amount of its stake in long-term delinquent bonds, held by the private non-performing asset management company ‘Sangnoksoo No.1 Securitization Specialty Company (Sangnoksoo)’, to the New Leap Fund operated by Korea Asset Management Corporation (KAMCO).

Shinhan Card Headquarters, Euljiro, Jung-gu, Seoul. Shinhan Card

Sangnoksoo is a special-purpose company established by major domestic banks and card companies. It does not participate in the government’s New Leap Fund policy, which is designed to help delinquent borrowers who have lost repayment ability by clearing small overdue debts.

Accordingly, Shinhan Card has decided to sell its portion of the bonds to KAMCO in order to support the rehabilitation of borrowers affected by the card crisis.

It is reported that KAMCO requested the sale at the end of last month, and Shinhan Card subsequently made an internal decision to proceed with the sale.

Once these bonds are transferred to the New Leap Fund, the following will occur: ▲ Immediate suspension of collection on the respective borrowers ▲ Debt restructuring and installment repayment plans based on repayment ability ▲ For borrowers with no repayment capacity, such as those receiving basic livelihood security, bonds will be automatically written off within one year.

On this day, President Lee Jaemyung posted on X (formerly Twitter) an article highlighting concerns that the private bad bank Sangnoksoo does not participate in the government’s debt relief policy, the New Leap Fund, thereby preventing related debtors from benefiting from debt forgiveness. He pledged to resolve the issue.

A Shinhan Card representative stated, “We deeply regret not having recognized the situations of borrowers suffering financial difficulties for over 20 years sooner,” adding, “We have decided to sell the entire amount of these bonds as we believe we can no longer postpone this matter, and we will more actively practice the values of inclusive finance going forward.”

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