Following NongHyup, Woori and SC Jeil Bank Also Join 'Loan Suspension'

[Asia Economy Reporter Seong Gi-ho] Following NH Nonghyup Bank, other commercial banks are also suspending household loans. This is interpreted as a preemptive response after financial authorities announced strong regulations on household loans.

According to the financial sector on the 20th, Woori Bank and SC Jeil Bank have suspended some loan products.

First, Woori Bank will suspend new jeonse deposit loans until the end of September. This is due to the full exhaustion of the approved quota for the third quarter. However, if a consumer who has already been approved for a loan cancels it, a new loan of the corresponding amount will be possible.

Along with this, SC Jeil Bank also decided to suspend new loans for the 'First Home Loan' mortgage product that uses the new balance-based KOFIX as the base interest rate. Additionally, from the 30th, SC Jeil Bank will lower the branch manager’s discretionary preferential interest rate for the ‘First Home Loan’ by 0.2 to 0.3 percentage points and also reduce the branch manager’s discretionary preferential interest rate for the ‘First Jeonse Guarantee Loan’.

Earlier, Nonghyup Bank decided to suspend real estate secured loans for three months from the 24th until the end of November. At the same time, it also stopped accepting new jeonse loans. Nonghyup Bank’s household loan balance increased from 126.3322 trillion KRW at the end of last year to 135.316 trillion KRW at the end of July. The growth rate during this period was 7.1%, exceeding the annual household loan growth target of 6% set by financial authorities, prompting the bank to take measures to control it.

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