"Year-End Quick Cash Options Blocked" KakaoBank Also Halts 'Minus Loan' (Comprehensive)

KakaoBank Joins Comprehensive Credit Loan Regulations by Commercial Banks
KakaoBank to Suspend New Overdraft Accounts from 17th... Aligning with Regulatory Measures
Loan Access Blocked for Borrowers Needing Urgent Funds Amid COVID-19 Resurgence and Soaring Jeonse Prices

[Asia Economy Reporter Kim Hyo-jin] KakaoBank, an internet-only bank, will suspend its 'overdraft credit loan' until the end of this month. As banks have been stepping up strong total household loan management due to the surge in loan demand caused by low interest rates, living expenses related to COVID-19, and 'Youngkkeul' (borrowing to the limit) and 'Debt Investment' (investing with loans), KakaoBank has joined the trend.

According to the banking sector on the 17th, KakaoBank will temporarily suspend new overdraft loans for high-credit salaried workers from today until the end of the year. KakaoBank explained, "This is to stabilize the rapidly increasing household debt." Individual credit loans, emergency loans (small overdraft loans), Saetdol and private mid-interest rate loans, and jeonse and monthly rent deposit loans are still available as usual. Additionally, further transactions such as loan extensions on existing overdraft accounts are permitted.

With financial authorities pressuring the management of household loans such as credit loans, banks have been tightening lending one after another. Now, with KakaoBank also suspending overdraft loans, consumers’ access to loans will be significantly restricted until the end of the year.

Earlier, Shinhan Bank decided not to accept non-face-to-face applications for salaried workers’ credit loans, including the 'Solpyeonhan Salaried Worker Credit Loan,' from the 15th until the end of this month, and from the 14th, lowered the credit loan limits for professionals such as doctors and lawyers uniformly to 200 million KRW. KB Kookmin Bank has been blocking all household credit loans exceeding 100 million KRW in principle from the 14th until the end of the year. Refinancing home mortgage loans from other banks to KB Kookmin Bank’s home mortgage loans is also not allowed until the end of the year.

Woori Bank stopped selling its main non-face-to-face credit loan product, 'Woori WONhaneun Salaried Worker Loan,' on the 11th. Hana Bank also plans to reduce the basic credit loan limit for professionals such as doctors and lawyers from 150 million KRW to 50 million KRW as early as the end of this month.

Some voices express dissatisfaction, saying that financial companies are tightening lending excessively under financial authorities’ pressure amid growing economic uncertainty due to the prolonged COVID-19 pandemic and increasing urgent cash demand caused by soaring house and jeonse prices. They argue that while there are abundant places for money to go, reducing the channels for those with repayment ability to access funds could lead to real damage for actual borrowers.

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