Repayment of Household Loans Possible Even on Holidays... Financial Supervisory Service Implements Activation of Non-Face-to-Face Services at Savings Banks

Open Non-Face-to-Face Enrollment in Fixed Deposits at Multiple Savings Banks Within a Short Period
Apply for Tax-Exempt Comprehensive Savings for Vulnerable Groups Non-Face-to-Face
Repay Household Loan Principal and Interest Even on Holidays
Handle Interest Rate Reduction Requests and Contract Changes Without Visits from Application to Approval

Procedures for Opening and Closing Time Deposits through Dedicated Regular Savings Accounts

[Asia Economy Reporter Kangwook Cho] In the future, tax-exempt comprehensive savings for vulnerable groups can be applied for non-face-to-face, and principal and interest payments on household loans can be made even on holidays.

The Financial Supervisory Service announced on the 20th that it will implement measures to activate non-face-to-face transactions at savings banks with these contents.

First, a dedicated ordinary deposit account for subscribing to time deposits without a 20-day opening restriction will be introduced, enabling multiple non-face-to-face time deposit subscriptions within a short period. Currently, to subscribe to a non-face-to-face time deposit as the first transaction with a savings bank, it is essential to sign up for internet/mobile banking and open an ordinary deposit account. However, ordinary deposit accounts are restricted from additional openings within 20 days due to the potential misuse as "ghost accounts." Therefore, to subscribe to time deposits at two or more savings banks non-face-to-face, customers had to wait more than 20 days after the initial time deposit subscription.

If supporting documents are submitted by mail or fax, the tax exemption special case can be applied without visiting a branch. Vulnerable groups such as the elderly and disabled can apply for tax exemption within 50 million KRW when subscribing to savings handled by financial companies such as savings banks. However, some savings banks required submission of related supporting documents in person at branches, causing difficulties due to the limited number of branches. This issue has been improved.

It will be possible to repay household loans using internet or mobile banking even on holidays. Currently, if the loan maturity falls on a holiday, the maturity is automatically extended to the first business day after the holiday, and customers must bear the agreed interest. Also, some savings banks do not operate holiday loan repayment systems, so even customers with repayment funds could not repay loans during holidays.

When accepting requests for household loan interest rate reductions, it will be improved to allow contract changes through recording or other methods. Those who have signed loan contracts with savings banks can request interest rate reductions if their credit status improves. Although interest rate reductions can be applied for via apps or websites, some savings banks required visiting branches to conclude interest rate reduction contract changes.

The Financial Supervisory Service expects that as the transaction practices and systems of savings banks, which have been mainly face-to-face, are improved to be more customer-friendly and convenient, the convenience of customers wishing to use savings bank deposit products with relatively high deposit interest rates amid the recent low-interest-rate trend will be enhanced. Furthermore, through holiday loan repayments and prompt interest rate reduction processing, the burden of loan interest will be reduced, thereby strengthening consumer rights.

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