"Tightening Credit Loans for High Earners"…KakaoBank Interest Rate Up, Woori Bank Preferential Rate Down (Comprehensive)

Financial Authorities Adjust Regulations One After Another to Comply

[Asia Economy Reporter Kim Hyo-jin] Following the financial authorities' tightening of regulations to slow down unsecured loan growth, banks are accelerating efforts to restrict loans, focusing on high-income earners.

Kakao Bank announced on the 3rd that it will raise the loan interest rates for high-credit borrowers on salaried worker unsecured loans and overdraft loans by 0.10 percentage points and 0.25 percentage points, respectively. The new rates apply to loan applications submitted from 6 a.m. on the same day.

Accordingly, the minimum interest rate for salaried worker unsecured loans will increase from the existing 2.23% to 2.33%, and the minimum interest rate for overdraft loans will rise from 2.58% to 2.83%.

Kakao Bank explained that the base interest rates are being raised because there are no interest rate discounts through 'preferential rates' as part of loan speed control measures to manage asset soundness.

However, Kakao Bank will maintain the current interest rates for Saetidol loans, its own mid-interest rate loans, and jeonse deposit loans.

Woori Bank has lowered preferential interest rates for products such as 'Woori Main Salaried Worker Loan,' 'Woori Financial Club,' 'Woori New Generation Plus Loan,' and 'Woori Royal Club' starting today. Lowering preferential rates effectively increases loan interest rates.

The 'Woori Main Salaried Worker Loan' reduced the maximum preferential rate from 0.6% to 0.3%. The salary transfer preferential rate was cut from 0.2 percentage points to 0.1 percentage points, and preferential rate items previously offered for Woori Card performance and installment savings products, each at 0.1 percentage points, were eliminated.

The 'Woori Financial Club' preferential rate dropped from a maximum of 0.7% to 0.1%. The salary transfer preferential rate was reduced from 0.2 percentage points to 0.1 percentage points, and all preferential benefits for automatic payment of utility bills and management fees, Woori Card performance, installment savings products, housing subscription savings, open banking, and premium customers were abolished.

The 'Woori New Generation Plus Loan' and 'Woori Royal Club' also adjusted their preferential rates from up to 0.6% to a maximum of 0.1%. Only the salary transfer item provides a 0.1 percentage point preferential rate, and all other benefits were removed.

As of the end of last month, the outstanding balance of unsecured loans at the five major commercial banks?KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup?stood at 133.6925 trillion won, a sharp increase of 4.8494 trillion won from October's 128.8431 trillion won. This is interpreted as a surge in 'last-minute demand' ahead of the application of strengthened loan regulations.

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