[새해 금융이슈]Banknotes resume credit today… Authorities will soon announce comprehensive measures

Commercial banks are unlocking the credit locks that were temporarily locked at the end of last year. However, in order to manage the total amount of household loans that have already increased, the limit lowered last year is maintained. In the first quarter of this year, the financial authorities are planning to announce the’Advanced Household Debt Management Plan’ that contains additional regulations on household loans and countermeasures against insolvency.

According to the financial sector on the 4th, KB Kookmin Bank lifted the’Stop all household loans of 20 million won or more’, which was implemented from the 22nd of last month. However, it maintains the credit limit for professional loans, which was reduced at the end of September last year. Kookmin Bank has reduced the limits of’professional credit loans (400 million → 200 million won)’,’KB employee credit loans (300 million → 200 million won)’, and’KB Star credit loans (300 million → 150 million won)’.

Shinhan Bank will also resume credit loans from the 4th. Earlier, on the 15th of last month, Shinhan Bank halted’convenient employee credit loans’, which are non-face-to-face loan products for office workers, and mortgage loans for non-face-to-face life stability funds. Shinhan Bank also decided to maintain the limit on professional-related credit loans, which was reduced from 300% to 200% in October last year.

NH Nonghyup Bank adjusted the speed by reducing the preferential interest rate for household loans at the end of last year, but decided to increase it again from the 4th. Nonghyup Bank raises the preferential interest rate for variable rates from 1.0%p to 1.4%p by 0.4%p. In the case of credit loans, the maximum is also increased from 0.25%p to 1.2%p.

Woori Bank and Hana Bank are weighing the timing of canceling the suspension of credit loans, such as’We WON Employee Loan’ and’Hana One Q’, which were discontinued last year, and resumption during this month is promising. Woori Bank decided to maintain the preferential interest rates for some products, such as’our main business office worker loan’, which was reduced by 0.5%p in October last year, and’we don’t use office worker loan’.

From the 6th, Hana Bank will lower the limit of 150 million won per professional occupation, such as’Doctor Club Loan’ for doctors and oriental doctors, and’Royer Club Loan’ for lawyers, to 50 million won.

Kakao Bank, an internet-specialized bank, has resumed its negative bankbook credit loan, which was suspended on the 17th of last month, from 6 am on the 1st.

An official from a commercial bank said, “At the end of last year, the rate of increase in household loans was too fast, so we had to stop it, but if the new coronavirus infection (Corona 19) situation is still continuing, maintaining the suspension of household loans can cause a serious loan cliff.” “They are forced to resume loans because they can go to businesses with higher interest rates and increase the burden,” he said. He said, “We are trying to manage the total amount as much as possible by maintaining the loan restrictions for high-income professionals with relatively low financial power.”

Financial authorities are planning to announce additional regulations in the first quarter of this year as it is not easy to slow down the growth of household loans despite the efforts of banks.

Experts believe that the financial authorities will put more weight on managing the risk of insolvency, which has expanded due to the prolonged Corona 19, rather than the method of clamping down the total amount of household loans as before.

“As interest rates are low and asset prices such as real estate and stocks are high, the rise in household loans is expected to continue this year,” said Kim So-young, a professor of economics at Seoul National University. I expect to do it,” he said.

Professor Kim said, “Management of the total amount of household loans is important, but now we have to be wary of the situation where we cannot repay later due to more dangerous credits.” “Because there is a need to precisely regulate the credit that exists, additional measures may come out centering on non-banking sectors.”

Hong Jun-pyo, a researcher at the Hyundai Economic Research Institute, said, “It can be considered safe macroscopically (due to the total amount regulation), but (in the future) the debt risk toward vulnerable households, where small business owners and others are heads of households, will inevitably increase. There is no situation,” he said. “We expect that micro-fine (fine) tweezers regulations will come out rather than any more total quantity regulations.”

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