K-Bank Achieves 1 Trillion KRW in Jeonse Loans in Just Over One Year Since Launch

Jeonse Loan and Youth Jeonse Loan Released in September Last Year Reach 1 Trillion Won in Just Over a Year

As of the 3rd, Jeonse Loan Interest Rates at Industry Lowest: General 3.80% Annual, Youth 3.63% Annual

First in Financial Sector to Offer Jeonse Safety Management Service Notifying Changes in Mortgage Registration and Other Records

[Asia Economy Reporter Sim Nayoung] K-Bank announced on the 3rd that its jeonse loan has surpassed 1 trillion KRW just over a year after its launch.

K-Bank introduced two products, the jeonse loan and the youth jeonse loan, in September last year, and exceeded 1 trillion KRW in just over a year. In March this year, it surpassed 600 billion KRW six months after launch, and has continued steady growth by reaching 1 trillion KRW in just over a year.

Analysis of the jeonse loan customer base showed that the MZ generation mainly uses the service. Customers in their 20s and 30s accounted for 78% of the total customer base, representing the largest share. In particular, those in their 30s made up 53%, more than half. Additionally, single-person households accounted for 42%, indicating that the product meets the actual housing demand of younger generations.

There has also been a recent trend of increasing guaranteed monthly rent (banjeonse). Until June this year, guaranteed monthly rent accounted for an average of 12% among general jeonse loan products, but from July it rose to the 20% range. This indicates a growing demand for monthly rent.

K-Bank’s jeonse loan is characterized by maximizing convenience, allowing loans to be executed via mobile in just 2 minutes. Users can immediately check the estimated interest rate and loan limit by entering information about the property and annual income.

The document submission process has also been greatly simplified, requiring only two documents: the lease contract (with a confirmed date) and the deposit receipt (payment of at least 5% of the deposit), both submitted by photo. The other eight documents are automatically sent through certified login.

K-Bank has continuously lowered interest rates to reduce the interest burden on actual residents. Since the base rate began to rise significantly in June, the bank has cut rates five times, lowering them by up to 1.59 percentage points in total.

As a result, it offers the lowest interest rates among banks. According to the Financial Supervisory Service’s “Financial Products at a Glance” disclosure, last month K-Bank’s jeonse loan had the lowest interest rate at 3.61% per annum among all banks. As of the 3rd, K-Bank’s general jeonse loan interest rates range from 3.80% to 5.26% per annum, and youth jeonse loan rates range from 3.63% to 4.11% per annum, the lowest in the industry.

Additionally, K-Bank recently launched a ‘Real Estate Asset Management Service’ along with its loan products, providing a jeonse safety management service. Customers receive automatic alerts if there are changes in registration information such as mortgage rights or provisional seizure, which pose a high risk of infringement on the deposit rights of registered jeonse apartments. K-Bank covers all costs for viewing the certified copy of the register, allowing users to check the information for free via the app.

With growing concerns about deposit recovery due to recent real estate price declines, jeonse loan customers can now receive safe and convenient post-management services.

A K-Bank official said, “Despite the increased interest burden due to the base rate hike, multiple rate cuts contributed to surpassing 1 trillion KRW with the industry’s lowest jeonse loan interest rates,” adding, “We will continue to provide customized benefits to jeonse loan customers through diverse and differentiated services.”

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