[2021 National Audit] Yoon Jong-won, CEO of Industrial Bank of Korea, "Actively Considering Reduction of Early Repayment Fees"

[Image source=Yonhap News]

[Asia Economy Reporter Park Sun-mi] Yoon Jong-won, President of Industrial Bank of Korea, stated that he plans to actively review the extent to which the early repayment fee can be reduced or waived.

On the 15th, during the National Assembly's Political Affairs Committee audit, Kim Byung-wook, a member of the Democratic Party of Korea, mentioned the necessity of waiving the early repayment fee and pointed out, "As a policy financial institution, Industrial Bank of Korea should also consider the early repayment fee."

The early repayment fee is a kind of 'penalty' fee imposed by banks when a borrower repays all or part of the loan principal before the maturity date after taking out a loan. Previously, Ko Seung-beom, Chairman of the Financial Services Commission, also responded to a similar question during the audit, stating, "We will consider reducing the early repayment fee for policy mortgage products from the current 1.2% to around 0.6%."

President Yoon said, "I agree with the intention that the early repayment fee should be reduced," and added, "We will review whether it is possible to temporarily adjust the early repayment fee to provide an incentive for those who can repay part of the loan. We will actively review to what extent this can be done."