Woori Bank Reduces Principal When Paying Overdue Interest... "Practicing Win-Win Finance"

Starting This Month for One Year from Jo Byung-kyu's Appointment as Bank President
First Month Interest Cashback on Personal Business Guarantee Loans

Woori Bank announced on the 4th that it will implement the ‘Overdue Interest Principal Repayment Support Program,’ which reduces the principal by the amount paid when overdue interest is paid, in order to alleviate the financial burden on borrowers with overdue loans.

This is Woori Bank’s first-ever overdue reduction support measure and is part of the ‘Woori Win-Win Finance 3·3 Package’ announced last March. It will be implemented for one year starting this month, coinciding with the inauguration of the new bank president, Cho Byung-kyu. A Woori Bank official explained, “About 400,000 customers will benefit from reduced financial costs through the Overdue Interest Principal Repayment Program, and it will help normalize overdue loans worth approximately 560 billion KRW.”

The support applies to overdue won-denominated loans managed by Woori Bank, where the overdue interest paid monthly will be used as funds to automatically repay the principal the following month. There are no limits on the support amount or the number of times it can be applied. Early repayment penalties due to principal repayment are waived, and customers who fully repay their loans can receive cashback benefits. Eligible customers will receive advance notification via text message and can check the results through Woori Bank’s application, ‘Woori WON Banking.’ However, certain loans such as credit line loans (overdraft accounts), policy fund loans, and housing fund loans are excluded from this program.

Support measures for individual business owners struggling with high interest rates and inflation will also be implemented simultaneously. Woori Bank stated that it plans to provide financial support totaling 1.3 trillion KRW annually and a full refund of the first month’s interest to about 50,000 individual business customers who apply for guaranteed loans through 17 credit guarantee foundations nationwide.

Without any separate application process, cashback will be provided on the 15th of the month following the month in which the first month’s interest is paid. For example, if a new loan customer in July pays interest normally in August, they will receive a refund of the interest paid on September 15th. However, if the first month’s interest is overdue, the benefit will not be granted.

A Woori Bank official said, “We hope that this Overdue Interest Principal Repayment Support Program and the interest reduction for individual business loans will serve as a ‘ladder of hope’ for various groups facing difficulties,” adding, “We will continue to develop sustainable financial support programs for mutual growth and evolve into a financial company that grows together with its customers.”

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