K Bank Surpasses 1 Trillion Won in Apartment Mortgage Loans in Just One Year

[Asia Economy Reporter Kiho Sung] K-Bank announced on the 11th that its apartment mortgage loan (Adamdae) surpassed 1 trillion KRW just over a year after its launch.

The apartment mortgage loan is a product that allows the entire process from loan application to loan disbursement to be completed 100% non-face-to-face. It is the first in the industry to independently develop an electronic repayment power of attorney, enabling the delegation process to be completed with just an ‘electronic signature’ without a seal certificate when applying for mortgage loan refinancing. In particular, the service was improved so that customers can check the expected interest rate and limit in about 2 minutes by simply entering basic information such as the address of their own apartment and annual income. Furthermore, the usual processing time from initial loan application to approval, which typically takes about 6 days, was automated and drastically reduced to just 2 days.

The interest rate competitiveness is also high. According to the Bankers Association, as of last month (December 2021), K-Bank’s Adamdae average interest rate was 2.98% per annum, the lowest compared to the four major commercial banks. Under the same criteria, the mortgage loan interest rates of Kookmin, Woori, Hana, and Shinhan Banks, including preferential conditions, range from 3.61% to 3.82% per annum. In terms of interest, customers who switched to K-Bank’s Adamdae loan received interest rates about 0.3 to 1 percentage point lower than the weighted average interest rate of the banking sector in the year they initially took out the mortgage loan.

Accordingly, when calculated based on the weighted average interest rate reflecting the proportion of loan execution amounts, the average annual interest savings per customer who switched from an existing mortgage loan to K-Bank’s Adamdae was analyzed to be approximately 1.4 million KRW.

A K-Bank official stated, “Adamdae achieved a cumulative handling amount of 1 trillion KRW just over a year after its launch, following the Financial Services Commission Chairman’s Award in the innovation category at the 6th Finance Day last year, thanks to its differentiated non-face-to-face convenience and interest rate benefits. We will continue to do our best to provide innovative services encompassing not only finance but also other areas based on digital technology.”