[2021 National Audit] Go Seung-beom "Considering Reducing Policy Mortgage Prepayment Fee from 1.2% to 0.6%"

Financial Services Commission Chairman Ko Seung-beom attended the National Assembly's Public Administration and Security Committee's audit of the Financial Services Commission held at the National Assembly on the 6th and is reporting on his duties. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Kim Jin-ho] Ko Seung-beom, Chairman of the Financial Services Commission, announced on the 6th that he would consider reducing the prepayment penalty for policy mortgage products to about half.

Chairman Ko made this remark during the National Assembly's Financial Services Commission audit by the Political Affairs Committee, responding to a question from Kim Byung-wook, a member of the Democratic Party of Korea, who asked, "Why do prepayment penalties exist for policy financial products, and isn't a major reform necessary?"

Chairman Ko said, "We are considering lowering the prepayment penalty for policy mortgages, which is currently up to 1.2%, to half, at 0.6%."

However, he expressed a negative view on abolishing prepayment penalties for commercial bank loan products. He stated, "It is difficult to eliminate them all at once because commercial banks may face fund mismatches," and added, "We will look into various issues related to prepayment penalties, including the possibility of consumers bearing the cost through higher loan interest rates."

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