K Bank Limits Credit Loans and Overdrafts to 'Within Annual Income'

[Asia Economy Reporter Kiho Sung] Internet-only bank K Bank has decided to limit credit loans and overdraft loans to 'within annual income' and is reviewing the timing of its implementation.

On the 13th, K Bank stated, "We have finalized the plan to limit the credit loan and overdraft loan limits to 'within annual income,' but the timing of application is still under internal discussion."

Currently, K Bank's maximum credit loan limit is 250 million KRW, and the maximum overdraft loan limit is 150 million KRW.

K Bank has maintained the product-specific limits as they are while introducing only the 'within annual income' restriction.

The reason K Bank can maintain the highest level of credit loan and overdraft loan limits among major commercial banks is attributed to the fact that loans were completely suspended for over a year and loan operations only resumed in July last year.

Previously, other commercial banks reduced the maximum limits for credit loans and overdraft loans one after another in line with the financial authorities' strengthened loan regulations.

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