Three Internet-Only Banks Join Efforts to Curb Debt Investment... Begin Tightening Unsecured Loans and Overdraft Accounts

K Bank Suspends Sales of Overdraft Loans with 300 Million Won Limit
KakaoBank Reduces Overdraft Loan Limit from 240 Million Won to 100 Million Won
Toss Bank Lowers Credit Loan Limit from 300 Million Won to 100 Million Won

As commercial banks begin to tighten limits on unsecured loans and overdraft accounts, the three major internet-only banks—KakaoBank, Toss Bank, and K Bank—have also decided to join these efforts.

According to the three internet banks on June 16, K Bank will temporarily suspend sales of its overdraft loan product, which has a maximum limit of 300 million won, starting today and continuing through July 31. The current interest rate ranges from 4.8% to 15%. This measure is intended to ensure a stable supply of household loans.

KakaoBank has also announced that, starting June 22, it will reduce the maximum limit for overdraft loans from 240 million won to 100 million won. As credit loans are only available within the borrower's annual income limit, this change is expected to primarily affect high-income borrowers.

Additionally, starting next month, when extending overdraft loans with an agreement of more than 50 million won, KakaoBank will reduce the limit by up to 20% for accounts where the usage rate over the past six months is 20% or less.

KakaoBank currently applies a daily limit on the number of credit loan applications, and plans to maintain this policy; loan products for mid- to low-credit borrowers are excluded from these restrictions.

Toss Bank will lower the maximum limit for credit loans from 300 million won to 100 million won, effective from 6 p.m. on June 18. For new overdraft accounts, the limit will be reduced from 150 million won to 50 million won.

Toss Bank also explained that, in order to prevent a rapid increase in loan volume, if the total amount of credit loans exceeds an appropriate level, loan applications may be temporarily restricted.

The standards for adjusting limits for existing overdraft customers will also be strengthened. Starting June 24, accounts with a usage rate of 40% or less over the past three months will be subject to the revised policy. With this adjustment, the minimum reduction rate will be raised from 20% to 30%, and the loan limit may be decreased by up to 40%.

A Toss Bank representative stated, "The end date for these adjustment measures has not been determined," adding, "We will respond comprehensively by considering future trends in household lending and overall market conditions."

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