Banks have simultaneously suspended non-face-to-face loans to prepare their computer systems for the implementation of high-intensity lending regulations announced by financial authorities. The decision follows the surprise announcement of the lending regulations on the 27th, which took effect immediately the next day, the 28th, without any preparation time. The suspended loans include credit loans, which are expected to cause greater inconvenience to actual demanders for the time being.
According to the financial sector on the 29th, major banks, including KB Kookmin, Shinhan, Hana, and Woori Bank, as well as regional banks and internet-only banks, have suspended the acceptance of new non-face-to-face loans for major mortgage products, credit loans, and overdraft loans through mobile applications (apps) since the previous day.
KB Kookmin Bank will not accept non-face-to-face mortgage applications starting from this day. Non-face-to-face credit loans have been suspended since 5 p.m. on the 27th. When accessing the mobile app to apply for a loan, notices appear stating "All eligible loan applications have been exhausted" and "Some non-face-to-face loan applications are restricted to strengthen household debt management." Shinhan Bank has also suspended non-face-to-face mortgage applications. Credit loan applications are still being accepted. Additionally, Woori, NH Nonghyup Bank, and iM Bank (formerly Daegu Bank) are not accepting any non-face-to-face applications for household loans.
Earlier, financial authorities limited the mortgage loan ceiling for purchasing dwellings in metropolitan and regulated areas to a maximum of 600 million won. The credit loan ceiling was also reduced to within annual income. A bank official noted, "Time is needed to operate the computer system stably under the new regulations," adding, "It is expected to take at least a week, or at best three days."
Financial authorities are expected to report on the progress of the computer integration and will conduct on-site inspections starting from the 30th.