Starting June 19, NH Bank will limit household credit loans to a maximum of 100 million won per borrower.
For overdraft accounts, the limit will be based on the lesser of 100 million won or half of the borrower's annual income.
Previously, NH Bank reduced preferential interest rates for mortgage and credit loans by 0.2 percentage points and 0.1 percentage points, respectively, effective the day before.
An NH Bank official stated, "This is a measure to manage stable household loan volumes."
According to the Financial Services Commission, household loans in the financial sector increased by 9.3 trillion won last month, nearly tripling the increase from the previous month (3.5 trillion won). This is the largest increase since August of last year (9.8 trillion won). Notably, credit loans and other loans, including overdrafts, surged by 5.3 trillion won.
In response, financial authorities held a household debt monitoring meeting on June 11 and decided to activate an emergency management system until the trend of rising household debt stabilizes. Banks have begun limiting online applications for credit loans and restricting overdraft limits for high-income earners.
Hana Bank has already limited credit loan amounts to 100 million won for high-income earners since June 12 and plans to strengthen measures to reduce unused overdraft limits upon renewal.
Shinhan Bank is restricting applications for credit loans when daily submissions exceed internal management standards. KB Kookmin Bank has also set new limits starting today, capping general credit loans at 100 million won and overdrafts at 50 million won.
Woori Bank has halted online applications for credit loan refinancing since June 11 and is restricting all credit loan applications coming through loan comparison platforms.
* This article has been translated by AI.
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