According to the financial sector on June 12, Hana Bank has implemented voluntary measures to ensure stable management of household debt.
The bank will limit the maximum credit loan amount for all borrowers, including high-income earners, to 100 million won.
Hana Bank will also strengthen its management of overdraft accounts. Previously, the bank reduced limits on unused accounts during maturity extensions for certain products, but exceptions were made for some. Going forward, these exceptions will be eliminated, and limit reductions will be uniformly applied according to regulations.
Hana Bank plans to review the trend of increasing credit loans and consider additional measures in the future.
Woori Bank has also suspended the sale of online credit loan refinancing products starting today. However, new credit loan applications will still be accepted, and products aimed at supporting low-income individuals are excluded from this measure. Both new loans and refinancing loans will continue to be processed normally at bank branches.
Woori Bank is also planning to restrict credit loan applications through loan comparison platforms such as KakaoPay, Naver Pay, Pinda, Toss, and Bank Salad. Measures are being considered to prevent Woori Bank's credit loan products from being recommended on these platforms or to block connections through the Woori WON Banking app.
Shinhan Bank is set to implement a proactive management plan for credit loans starting on June 15. If the daily application volume for credit loans through both branch and online channels exceeds internal management standards, the bank will restrict online credit loan applications. However, financial support products for vulnerable groups, such as low-income loans and mutual aid refinancing loans, will be exempt from these restrictions.
Management of overdraft accounts will also be tightened. For household credit loans exceeding 30 million won, accounts with a usage rate of less than 10% in the three months prior to the maturity date will see their limits reduced by up to 20% upon renewal.
NH Nonghyup Bank will reduce preferential interest rates for housing loans by 0.2 percentage points and for credit loans by approximately 0.1 percentage points starting on June 15. KB Kookmin Bank is also reviewing similar voluntary measures regarding credit loans.
The banking sector's tightening of credit loan management comes amid concerns over the rising trend of borrowing to invest, spurred by the recent stock market rally. There is growing apprehension that the demand for credit loans and overdrafts to finance stock investments is fueling an increase in household debt.
According to the Financial Services Commission, household loans across the financial sector increased by 9.3 trillion won last month compared to the previous month. Notably, the amount of overdraft loans from banks rose by 2.6 trillion won.
A financial sector official stated, "In light of the recent increase in credit loans, we are preparing proactive operational measures to manage household debt stably."
* This article has been translated by AI.
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