Internet specialty banks expand supply of medium-interest-rate loans.. Cut the highest interest rate to 20% from July this year.

Internet specialty banks expand the supply of mid-interest rate loans. The Financial Services Commission announced that it will reorganize the system so that middle-interest-rate loans are supplied to the middle and low credit groups. The policy is to induce the absorption of low-credit users by cutting the highest interest rate.

On the 30th, an amendment to the Enforcement Decree of the Loan Business Act and Interest Restriction Act to cut the maximum interest rate passed the State Council. The party and the government announced that they would cut the maximum interest rate under the law from 24% to 20% in order to alleviate the burden of high interest rates on the common people.

The era of’Open Banking’ has arrived in earnest, in which all bank accounts can be viewed, paid, and remitted with just one’app (application)’. Financial sectors such as general banks, Internet banks such as Kakao Bank and K-Bank are expected to break down boundaries and compete more fiercely for survival.

The Financial Services Commission said, “Each detailed plan will be announced sequentially in March-April and will be implemented as soon as possible in line with the implementation of the maximum interest rate cut.” You can get the highest interest rate.”

He explained that even if a long-term contract has already been signed, it may be advantageous to repay the existing contract and sign a new contract (return).


Author/ Translator: Jamie Kim
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