Financial Services Commission Announces Legislative Notice for Amendment to the Enforcement Decree of the Loan Business Act... Measures to Address Side Effects to Be Announced in the First Half of Next Year
Loan Sharking Damage Prevention Counseling Center
[Asia Economy Reporter Kangwook Cho] The maximum interest rate applied to private lenders and credit finance institutions will be lowered from 24% to 20%.
The Financial Services Commission announced on the 23rd that it will give prior notice of the amendment to the Enforcement Decree of the "Act on Registration of Credit Business and Protection of Financial Consumers" reflecting this change.
The FSC plans to complete the amendment procedures, including prior notice until February next year, review by the Regulatory Reform Committee and the Ministry of Government Legislation by March, and promulgate the amended enforcement decree within March. It will then be implemented after a three-month grace period.
In addition, the FSC plans to prepare and announce supplementary measures to minimize side effects caused by the reduction of the maximum interest rate in the first half of next year.
These measures are expected to include expanding the supply of policy-based financial products for low-income earners, continuing efforts to eradicate illegal private loans, and promoting private low-income loans through support for high-interest financial sectors (savings, credit finance, private lending).
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
