Adjustment of Reduction Scope for Loan Brokerage Fees Exceeding 5 Million Won... Eased to 0.75%P

[Asia Economy Reporter Kwangho Lee] The Financial Services Commission has decided to slightly ease the upper limit on loan brokerage fees exceeding 5 million won from the existing 1 percentage point to 0.75 percentage points.

On the 21st, the Financial Services Commission held the 14th regular meeting and announced that it had approved the "Amendment to the Enforcement Decree of the Act on Registration of Loan Business and Protection of Financial Consumers," which includes this content.

The Financial Services Commission announced in April a plan to lower the upper limit of loan brokerage fees by 1 percentage point each to improve reckless loan solicitation behaviors caused by high brokerage fees and to secure loan capacity for low-credit borrowers in high-interest sectors.

However, after reviewing opinions received during the legislative notice period and the deliberation results of the Regulatory Reform Committee, it was decided to ease the reduction rate in the section exceeding 5 million won.

Since lowering the fee cap from the existing 4% to 3% for the section under 5 million won represents a 25% reduction, it is reasonable to apply the same 25% reduction rate to the section exceeding 5 million won. Therefore, instead of lowering the existing 3% fee cap by 1 percentage point to 2%, it will be lowered by 0.75 percentage points to 2.25%.

The amendment to the Enforcement Decree of the Loan Business Act is expected to be promulgated and enforced in August after review by the Ministry of Government Legislation and the Cabinet meeting.

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