During a recent visit to the KB Kookmin Bank branch in Daejeon, the location was bustling with customers conducting financial transactions, even during lunchtime. At the back of the branch, a designated area labeled 'KB Hope Finance Center' stood out, designed for borrowers struggling with financial difficulties or loan delinquencies. The setup ensures that clients' faces and voices are not easily identifiable from outside, catering to those who may be hesitant about revealing their delinquency status.
Since opening its doors in December of last year, the center has expanded to six locations nationwide, conducting over 300 consultations to date. The Daejeon branch, which opened in April, has received inquiries not only from the Chungcheong region but also from places like Paju, Jeonju, and Buan. Many clients seeking consultations are not even existing customers of the bank. Shin Kwang-cheol, head of the KB Hope Finance Center in Daejeon, explained, "We have matched centers regionally, such as Daejeon-Jeonbuk and Daegu-Busan, to ensure consultations are available nationwide without gaps."
Visitors to the KB Hope Finance Center come from various professions, but they share the commonality of being vulnerable borrowers. They range from small-scale multiple debtors with debts under 3 million won to university students in their 20s, small business owners, young professionals, and seniors. Shin noted that younger individuals often access services more flexibly through digital channels. Most of these clients have seen their credit ratings plummet to the lowest levels, accumulating delinquencies in both primary and secondary financial institutions, and seek the center as a last hope.
Shin remarked, "There are many who cannot repay their debts because they don't know how, even when they work hard and still can't afford the 500,000 won needed to pay their tuition. If they give up, it can damage their credit and make it difficult to renegotiate with banks."
The KB Hope Finance Center offers tailored support based on clients' income, loan structures, repayment histories, and payment willingness, leveraging the expertise of senior staff. For instance, they can adjust interest burdens by 30% to 70% or extend loan terms by three years, introducing internal programs linked with bank branches. The center is also the first in the banking sector to expand its own debt adjustment amounts to 50 million won or less during consultations.
For elderly clients who have lost income after retirement, the center connects them with reverse mortgage options by reviewing their pension income and real estate. They also guide clients to external support programs such as the Credit Recovery Commission, New Start Fund, and court rehabilitation and bankruptcy assistance through their own programs.
KB Kookmin Bank operates a separate non-face-to-face channel for debt adjustment consultations linked to the Hope Finance Center, establishing a comprehensive consultation system. The bank has deployed 10 staff members dedicated to remote debt adjustment, the largest number in the banking sector.
Another competitive edge of the KB Hope Finance Center is its mental health counseling service. To assist borrowers suffering from psychological stress due to long-term bad debts, KB Kookmin Bank has contributed 500 million won, achieving a utilization rate of 67.6% and recording 3,397 consultations to date, indicating high demand.
Shin emphasized, "A bank is not just a place to go when you have money; it can also be a place to reach out when you don't. Before turning to high-interest private loans or illegal moneylenders, it's better to consult your financial institution first to find a solution more easily."
* This article has been translated by AI.
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