Business · Economy · 1 day ago
Hana Bank cancels 134.3 billion won in long-overdue debt
Hana Bank in South Korea cancelled 134.3 billion won in long-overdue debt owed by 5,738 people, including young and older borrowers.
The move is intended to help people in financial difficulty get a fresh start.
The bank also cancelled 221.8 billion won in debt for 5,225 people in June, bringing its total for the year to 356.1 billion won.
Other financial groups are also cancelling old debts or offering reduced payments and longer repayment periods.
The government’s New Leap Fund buys debts that have been overdue for at least seven years and are no more than 50 million won, then cancels or adjusts them based on a borrower’s ability to pay.
Cancelling a debt can end repayment and collection demands, but it does not immediately erase a person’s credit history or restore their credit score.
The policy may help people return to work and spending, but some borrowers who repaid their loans say it feels unfair, and critics warn it could encourage people to delay repayment.
The key challenge is distinguishing people who cannot repay from those who can but choose not to.
Hana Bank said it cancelled 134.3 billion won in long-overdue debt owed by 5,738 people, including young and older borrowers.
The bank said the cancellation was intended to help financially vulnerable people recover.
It also cancelled 221.8 billion won in debt for 5,225 people in June.
Across the two cancellations this year, the total was 356.1 billion won, benefiting 10,963 people on a count that does not account for overlap.
The policy has raised concerns about fairness to borrowers who repaid their debts and the risk of encouraging some people to delay repayment.
- Who
- Hana Bank cancelled the debt of 5,738 financially vulnerable borrowers, including young and older people.
- What
- It cancelled 134.3 billion won in long-overdue debt.
- When
- Recently, according to the article published on October 11, 2026.
- Where
- South Korea.
- Why
- The bank said the cancellation was intended to help financially vulnerable people recover.
Financially vulnerable borrowers
Borrowers who repaid their debts
Purpose
Financially vulnerable borrowers
Debt cancellation can ease collection and seizure burdens and give people who cannot repay a chance to return to economic activity.
Borrowers who repaid their debts
People who carefully repaid their loans may feel unfairly disadvantaged.
Potential effects
Financially vulnerable borrowers
Relief may help borrowers resume earning and spending.
Borrowers who repaid their debts
If borrowers expect debts to be cancelled, some may deliberately delay repayment.
No direct quotes in the coverage so far.
Hana Bank cancelled 221.8 billion won in long-overdue debt for 5,225 people.
Hana Bank announced a second cancellation, covering 134.3 billion won owed by 5,738 people.
- Recent cancellation
- 134.3 billion won
- People covered in recent cancellation
- 5,738
- June cancellation
- 221.8 billion won for 5,225 people
- Total cancelled this year
- 356.1 billion won
- People covered this year
- 10,963, counted without accounting for overlap
Sources
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