Year-End Loan Freeze... K Bank Also Tightens 'Strictly' (Comprehensive)

K Bank Raises Interest Rates on Credit Loans
Kakao Bank Halts High-Credit Overdraft Loans
Regional Banks Also Join in Tightening Loans

[Asia Economy Reporter Kim Hyo-jin] The path to new loans is rapidly narrowing as the year ends. Commercial banks, internet-only banks such as KakaoBank and K Bank, and regional banks have joined in tightening loans under the financial authorities' strong pressure to manage the total volume of household loans. It is inevitable that individual business owners, who have high funding needs at the end of the year, will face difficulties in securing funds.

According to the banking sector on the 21st, K Bank raised its credit loan interest rates by 0.2 percentage points to a minimum annual rate of 2.42% starting today. The interest rate on overdraft loans was also increased by 0.2 percentage points to a minimum of 2.88%. However, K Bank excluded the 'Credit Loan Plus,' which has a strong mid-interest loan characteristic, from the rate hike. Earlier in September, K Bank also raised credit loan interest rates by 0.1 percentage points and overdraft loan interest rates by 0.2 percentage points.

A K Bank official explained, "This adjustment reflects market conditions such as interest rate hikes by other banks," adding, "Credit Loan Plus maintains the current interest rate level as a benefit for mid-credit borrowers." K Bank plans to apply the increased rates without a fixed deadline and respond flexibly depending on future circumstances. KakaoBank also temporarily suspended new overdraft loans for high-credit salaried workers from the 17th until the end of the year.

At the end of last month, K Bank's total loan balance was 2.71 trillion won, up 420 billion won from 2.29 trillion won at the end of October. KakaoBank's credit loan balance at the end of last month was 15.7502 trillion won, an increase of 555.3 billion won compared to 15.1949 trillion won at the end of October.

Regional banks are also stepping up loan restrictions one after another. DGB Daegu Bank stopped handling major non-face-to-face loan products such as ▲IM Salaried Household Credit Loans ▲Sseodam Sseodam Easy Loans ▲DGB Non-Visit Mortgage Loans from the 14th. Jeonbuk Bank has suspended sales of ▲BEST Salaried Credit Loans ▲JB Direct Salaried Credit Loans since last month.

Busan Bank reduced the credit loan limit for professionals from 400 million won to 300 million won last month and drastically cut the overdraft loan limit from 400 million won to 200 million won.

Top 5 Banks Also Successively Suspend Loans and Reduce Limits

Major commercial banks have also tightened loans simultaneously by suspending handling and reducing limits. Shinhan Bank is not accepting non-face-to-face applications for salaried credit loans, including the 'Solpyeonhan Salaried Credit Loan,' and has uniformly lowered the credit loan limits for professionals such as doctors and lawyers from 250 million to 300 million won per job category to 200 million won.

KB Kookmin Bank has, in principle, suspended all household credit loans exceeding 100 million won and blocked 'interbank refinancing mortgage loans,' which allow switching mortgage loans from other banks to KB Kookmin Bank. Woori Bank has suspended sales of its main non-face-to-face credit loan product, 'Woori WON (WON) Salaried Loan.' Hana Bank also plans to drastically reduce the basic credit loan limit for professionals such as doctors and lawyers from 150 million won to 50 million won as early as the end of this month.

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