Nonghyup Bank Implements Additional Measures to Curb Debt-Fueled Investments... Credit Loan Limit Set at 100 Million Won
Overdraft Account Limit Also Capped at 100 Million Won
NH Nonghyup Bank has taken additional measures related to household loans to curb "debt-fueled investments" (borrowing to invest).
NH Nonghyup Bank announced on June 16 that, starting June 19, it will limit the maximum amount available for unsecured household loans to 100 million won.
Specifically, for overdraft accounts, the loan limit will be set at the lower of 100 million won or half of the borrower's annual income.
As individual credit risk has increased due to rising demand for debt-fueled investments using unsecured loans, banks have responded by reducing credit loan limits and restricting non-face-to-face applications.
Since the previous day, Nonghyup Bank has reduced its preferential rates for mortgage loans by 0.2 percentage points and for unsecured loans by 0.1 percentage points.
Starting today, KB Kookmin Bank will limit the maximum loan amount to 100 million won for unsecured loans and 50 million won for overdraft accounts. Shinhan Bank limits the acceptance of unsecured loan applications if the daily volume exceeds its internal management standards, while Hana Bank has reduced the maximum loan amount for high-income earners to 100 million won.
Woori Bank has also suspended applications for refinancing unsecured loans through non-face-to-face channels since June 11 and is restricting all unsecured loan applications received through loan comparison platforms.
Not only commercial banks but also the three major internet-only banks have begun tightening management of unsecured loans. Beginning today, K-Bank will temporarily halt sales of its overdraft account loan product with a maximum limit of 300 million won until July 31.
Hot Picks Today
"Is This a Stock Market or a Casino? Predictions Meaningless"...After Repeated Crashes, KOSPI Surges 18% at the Last Minute
- "Sons Are Ultimately Strangers, Daughters Are the Best Nowadays"... Both Grandfathers and Grandmothers Prefer Daughters More
- KAI Equips Unmanned Aerial Vehicles with Domestic AI Semiconductors... Embarking on 'Physical AI' Implementation
- "30,000 Won Per Night, Is This for Real?"... What Is the Korean Experience Drawing Foreigners?
- "You Said It Would Rise If Left Alone" Chairman Chey Tae-won Bets 4.9 Billion Won... Earns 1.3 Billion in a Day
Toss Bank will lower the maximum limit for unsecured loans from 300 million won to 100 million won starting at 6 p.m. on June 18. KakaoBank will also reduce the maximum limit for overdraft account loans from 240 million won to 100 million won starting June 22.
© The Asia Business Daily. All rights reserved. Unauthorized AI training and use prohibited.
