Woori Bank Raises Credit Loan Bar Amid Surge in Debt-Fueled Investment... Limit Set at 100 Million Won

Woori Bank is tightening its lending policies in response to a surge in so-called 'debt-fueled investment' (investing with borrowed money) following the recent stock market rally, reducing credit loan limits and strengthening the management of revolving credit lines.

According to the financial sector on June 22, Woori Bank will limit personal credit loan amounts to a maximum of 100 million won per borrower starting June 26, 2026. The limit for revolving credit lines—commonly known as overdraft accounts—will also be reduced to a maximum of 50 million won, provided this does not exceed the borrower's annual income. If the daily number of non-face-to-face credit loan applications exceeds the bank’s internal management standards, new applications will be restricted. This restriction on non-face-to-face loan applications will go into effect beginning June 23, 2026.

From July 2026, when customers extend or renew revolving credit lines with low utilization, the unused portion of the credit limit will be reduced. Specifically, for customers extending or renewing their existing revolving credit lines in July whose average utilization rate is below 10%, the total credit limit will be reduced by 10%. If the average utilization rate is below 5%, the limit will be reduced by 20%. However, revolving credit lines with limits below 50 million won will be exempt from this reduction. The specific implementation date will be announced later.

Woori Bank stated that, due to recent changes in the housing and financial markets, there is a growing need to manage the increase in household loans. The bank explained that it has revised its lending criteria to ensure that loans are extended within the repayment capacity of each borrower.

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