[2023 National Audit] Financial Services Commission Chairman: "We Will Review the Bank Prepayment Penalty Calculation System"

October 11 National Assembly Political Affairs Committee Audit

Financial Services Commission Chairman Kim Ju-hyun holds a press conference on the first anniversary of his inauguration at the Government Seoul Office in Jongno-gu, Seoul, on the 7th. Photo by Yoon Dong-joo doso7@

Kim Ju-hyun, Chairman of the Financial Services Commission, announced that he will review the early repayment fee system of commercial banks.

On the 11th, during the National Assembly's Finance and Economy Committee audit, Rep. Cho Eung-cheon of the Democratic Party of Korea stated, "Banks pay only a meager amount of interest when deposits are withdrawn, but charge high fees for early loan repayments," adding, "It is necessary for financial authorities to examine whether early repayment fees are being reasonably calculated."

Kim said, "Early repayment fees include costs incurred when handling loans and losses due to changes in funding interest rates," and pointed out, "While there are claims of operational costs, among commercial banks, only Hana Bank differentiates between face-to-face and mobile channels."

He continued, "KakaoBank has waived early repayment fees, but commercial and regional banks collected 279.4 billion KRW last year and 181.3 billion KRW in the first half of this year in early repayment fees," adding, "Even so, if financial authorities ask to lower the fees, banks comply, but this raises doubts about whether the early repayment fee calculation system is reasonable."

In response, Chairman Kim said, "I will look into the early repayment fees."

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