KakaoBank Urgently Raises Credit Loan Interest Rates... "Is a Domino Effect of Rate Hikes Starting in the Financial Sector?"

[Asia Economy Reporter Kim Min-young] KakaoBank has raised its interest rates on unsecured loans. This is interpreted as a follow-up measure in response to recent financial authorities' efforts to control the rapid increase in unsecured loans caused by debt-financed investments (debt investment) and borrowing to the limit (borrowing up to one's soul).

On the 25th, KakaoBank announced that from today, the minimum interest rate for salaried workers' unsecured loans will be increased from 2.01% to 2.16%.

Earlier, on the 14th, the Financial Supervisory Service held a video conference with the five major commercial banks (Shinhan, KB Kookmin, Hana, Woori, NH Nonghyup) and KakaoBank, raising concerns about unsecured loans that could be excessively used by high-income and high-credit borrowers. In response, financial companies have begun implementing their own management plans.

According to the Financial Services Commission, the increase in unsecured loans in the financial sector last month reached 6.2 trillion KRW. This is 2.8 trillion KRW more than the 3.4 trillion KRW recorded in the same period last year. The increase in unsecured loans in the financial sector, which was only 200 billion KRW in January this year, surged to 3.7 trillion KRW in June and 4.2 trillion KRW in July.