7 Months of Debt Refinancing Infrastructure... 100,000 People Saved 49 Billion KRW in Interest

Total Refinancing of 2.3 Trillion Through Debt Refinancing Infrastructure

The "Refinancing Loan Infrastructure Service" launched by the Financial Services Commission and the financial sector has surpassed 100,000 users and a transaction amount of 2.3 trillion KRW in just over six months since its launch.

As of the 22nd, the Financial Services Commission announced on the 26th that the total amount of existing loans repaid through the refinancing loan infrastructure reached 2,323,724,000,000 KRW. This marks six months since the service began on May 31.

On the 9th, officials were busy moving in the corridor of the Financial Services Commission at the Government Seoul Office in Jongno-gu, Seoul, where the financial authorities decided to include mortgage loans (Judaemae) in the 'debt refinancing' infrastructure scheduled to be launched in May by the end of the year. The financial authorities explained that they aim to reduce the interest burden on mortgage loans by establishing a debt refinancing platform that allows users to compare financial sector loan interest rates at a glance and switch loans easily. Photo by Dongju Yoon doso7@

According to the Financial Services Commission, the number of users of the refinancing loan infrastructure was 103,462, with an average daily transaction amount of 16.48 billion KRW. The interest burden reduced as a result of refinancing is estimated to be about 49 billion KRW annually. The average loan interest rate dropped by approximately 1.6 percentage points.

Furthermore, by lowering loan interest rates through refinancing, the average credit score increase of financial consumers improved by about 35 points (based on KCB).

Notably, the usage rate of secondary financial sector borrowers increased from 9.3% on June 1 to 22.5% on the 22nd, showing a significant rise compared to the early days of the service. The authorities believe that this shift of financial consumers in the secondary financial sector is expected to bring greater financial cost savings and improvements in individual credit ratings.

Until now, each financial company has expanded competition to attract loan customers. Accordingly, the number of financial companies where loan conditions can be compared and selected on loan comparison platforms has increased compared to the initial phase.

Additionally, after the establishment of the refinancing loan infrastructure, major banks have increased the supply of new and refinancing loan products with lower interest rates to enhance their rate competitiveness. The number of financial companies listed on each platform expanded from 26 on June 20 to 48 as of the 22nd.

The Financial Services Commission stated, "Through the activation of the refinancing loan infrastructure service, healthy competition in the household loan market will be further promoted, enhancing the benefits for financial consumers, while expanding the foundation for mutual growth between financial companies and fintech firms."

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