"Deposit Interest Rate Comparison Brokerage Platform Launches"

Financial Services Commission Announces Loan-Deposit Interest Rate Spread Disclosure Measures on the 6th
Compare Deposit Products from Multiple Financial Companies via Online Platform
Bank-Specific Interest Rate Reduction Request Performance Also Disclosed

[Asia Economy Reporter Sim Nayoung] On the 6th, the Financial Services Commission announced the disclosure of the interest rate spread between deposits and loans for all domestic banks. To promote interest rate competition among banks, it also announced that the online deposit product brokerage business, which allows comparison of deposit products from multiple financial companies through an online platform, will be pilot-operated through designation as an innovative financial service.

Currently, loan product comparison platforms are active, but platforms for comparing deposit products are virtually nonexistent due to insufficient related regulations. The Financial Services Commission stated that "nine platform companies have expressed interest in the online deposit product brokerage business."

In addition, to increase the acceptance rate of interest rate reduction requests, from August, the performance of each bank's operation of the interest rate reduction request right (number of applications and acceptances, amount of interest reduction) will be disclosed semiannually. Since 2019, explanation of the interest rate reduction request right has been mandatory, but there was no way to check the operational performance by bank, which resulted in banks lacking incentives to increase the acceptance rate of interest rate reduction requests.

Regarding the newly established right to request explanation and raise objections to personal credit evaluation results, the plan also includes measures to ensure that banks properly inform consumers when granting loans. All individuals intending to enter into a loan contract are subject, and consumers can request correction, deletion, or re-evaluation after confirming the evaluation information.