5 Major Banks + KakaoBank Reduce Credit Loans to 'Within Annual Salary'

Hana Bank announced that it will limit the personal credit loan limit to "within the range of individual annual income." The photo shows the Hana Bank headquarters branch in Jung-gu, Seoul, on the 27th. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Kim Jin-ho] The five major commercial banks and KakaoBank have decided to reduce credit loans to within annual income, following the financial authorities' recommendation.

According to the financial sector on the 27th, Woori Bank has set a policy to limit household credit loans to 'within annual income' and is preparing to implement it in September. Woori Bank reported this plan, which centers on this content, to the Financial Supervisory Service on the same day.

Shinhan Bank also plans to reduce the limit of all credit loan products to annual income starting in September. KB Kookmin Bank is also expected to soon implement regulations on 'credit loans limited to annual salary.'

Earlier, on the 13th, the Financial Supervisory Service requested in a meeting with loan officers of commercial banks to lower the individual limit of credit loans such as overdraft accounts to the level of annual income.

Among commercial banks, NH Nonghyup Bank, which first reduced loans, lowered the maximum limit for new credit loans from the existing 200 million KRW to below 100 million KRW, or 100% of annual income, starting from the 24th. Hana Bank also limited individual credit loan limits to within annual income from the same day and reduced overdraft loans (limit loans) to a maximum of 50 million KRW per individual.

Internet-only bank KakaoBank will also reduce credit loan limits starting next month. KakaoBank's household loans have increased by about 18% up to July this year.

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