In the second quarter of this year, complaints at five major banks remained stable compared to the previous quarter, but complaints related to loans increased by over 25%. This rise coincides with the financial authorities tightening household loan management, leading banks to adjust their lending limits and criteria, which has caused greater inconvenience for consumers.
According to an analysis of data from the Korea Federation of Banks' consumer portal released on August 24, the total number of complaints at KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup banks in the second quarter was 154, a 1.3% increase from 152 in the previous quarter.
The increase in loan-related complaints was significantly higher than the overall complaint growth. The five major banks received 78 loan-related complaints in the second quarter, up 25.8% from 62 in the first quarter. The proportion of loan-related complaints rose from 40.8% in the first quarter to 50.6% in the second quarter, surpassing half of all complaints.
Industry insiders believe that the government's stricter management of household debt has influenced the rise in complaints. As banks adjusted their lending limits, interest rates, and conditions to meet total amount targets, consumers planning to take out loans faced increased confusion.
In May, the Financial Services Commission activated an emergency management system for household debt after a 6.9 trillion won surge in household loans from the previous month, urging financial institutions to comply with total amount targets. Subsequently, major banks reduced limits on mortgage loans and credit loans, and restricted access to mortgage credit insurance (MCI) and mortgage credit guarantees (MCG).
Restrictions on MCI and MCG mean that small rental deposits are deducted from the mortgage loan limit, reducing the amount available for loans. Each bank had different restrictions and implementation timelines, and the criteria for lending changed frequently based on market conditions, making it difficult for consumers to assess their funding needs and loan eligibility in advance.
There is a possibility that loan-related complaints will remain high in the second half of the year. With the growth of household loans showing little sign of slowing and financial authorities maintaining their total amount management stance, banks are unlikely to significantly lower lending thresholds. While NH Nonghyup Bank resumed offering variable-rate mortgage loans on August 20, other major banks have yet to announce additional easing measures.
As of August 20, the outstanding balance of household loans at the five major banks, excluding policy loans, was 651.151 trillion won, an increase of 6.181 trillion won from 644.970 trillion won at the end of last year. This figure exceeds the initial annual growth target of approximately 4.3 trillion won by 1.881 trillion won.
However, it is difficult to definitively conclude that the total amount regulation is the direct cause of the increase in complaints based solely on the second-quarter statistics. The tightening of household loan management began in earnest in the latter half of the second quarter, so the impact of related measures may be more clearly reflected in the third-quarter complaint statistics.
An industry official stated, “Banks must respond quickly to market conditions to manage household loan totals,” but added, “If lending limits and criteria change repeatedly without sufficient notice, it increases uncertainty for consumers, so it is necessary to communicate changes in criteria and implementation timelines more transparently.”
* This article has been translated by AI.
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