Kakao Pay's "Automatic Interest Rate Reduction Request" Service Surpasses 1 Million Applicants in Just One Month

37% of Survey Respondents Say
"Over 30% of Income Spent on Loan Repayments"
4 Out of 10 in Their 30s and 40s
Spend More Than 30% of Income on Principal and Interest Repayments

Kakao Pay announced on March 9 that the number of applicants for its "Automatic Interest Rate Reduction Request" service surpassed 1 million just over a month after its launch. This service, based on MyData, automatically detects the optimal timing for users to request a reduction in loan interest rates and submits the request on their behalf.

This result is interpreted as reflecting the strong demand from consumers seeking to reduce their interest burdens amid high inflation and high interest rate conditions. According to a survey conducted by Pay Attention, Kakao Pay's lifestyle-focused financial brand journal, approximately 37% of the 13,148 respondents said they spend more than 30% of their monthly income on repaying loan principal and interest.

In particular, age group analysis showed that 4 out of 10 respondents in their 30s (39.7%) and 40s (40.1%), who are the most economically active, spend more than 30% of their monthly income on principal and interest repayments. Even among those in their 60s and older, whose income tends to decrease, the proportion reached about 30%.

The core competitive edge of the "Automatic Interest Rate Reduction Request" is its "fully automated system" based on Kakao Pay's MyData platform, which boasts over 22 million subscribers. Once a user registers just once, the system uses MyData to monitor in real time for moments when an interest rate reduction becomes more likely, such as an improved credit score or increased income. Subsequently, without the user needing to visit a bank branch or prepare documents, Kakao Pay automatically submits the request for an interest rate reduction at the optimal timing.

The post-application management service for user convenience also stands out. After the request is made, the progress and final results are immediately provided through the app. Even if the interest rate reduction is not approved, users are not simply notified of the result; they are given specific reasons why the rate was not lowered. This enables users to accurately understand their credit status and receive practical guidance on how to increase their chances for a future interest rate reduction.

The Automatic Interest Rate Reduction Request service is available through the Kakao Pay app or under the "Asset Management" category in the All tab of Kakao Pay Home in KakaoTalk.

Kakao Pay stated, "This achievement is a meaningful example of how the policy support from financial authorities and Kakao Pay's data innovation have combined to generate real benefits for financial consumers. We will continue to further enhance our MyData capabilities to narrow the information gap and expand tangible financial benefits for users, thereby leading the way in creating a mutually beneficial financial ecosystem."

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