The measures include monitoring using the Consumer Protection Quality Index (CPQI), tighter management of loans to vulnerable groups, and an overhaul of a pre-review checklist for consumer protection.
Within this month, the bank will add key credit indicators to CPQI — including the status of new loans to older customers and first-time workers, and changes in delinquency rates — to step up monitoring for warning signs. CPQI is a data-based management index designed to assess consumer protection levels and support rapid responses when irregularities are detected.
The bank also plans to strengthen loan management for financially vulnerable customers. It will expand verification of borrowers’ actual repayment capacity, rather than relying mainly on collateral, to help prevent excessive borrowing, and will operate a tailored management system that reflects customer characteristics.
At the pre-consultation stage for consumer protection, KB Kookmin will revamp its checklist to reinforce advance screening. It will improve related processes so headquarters departments can review, in advance and from the customer’s perspective, key considerations when setting loan products and interest rate and fee policies.
“Maintaining a balance between stronger consumer protection and expanding inclusive finance is important,” a KB Kookmin Bank official said. “We will continue to do our best to ensure meaningful consumer protection from the customer’s point of view.”
* This article has been translated by AI.
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