Financial Services Commission Chairman: "Refinancing Loan Infrastructure Should Not Impose Excessive Fees"

53 Financial Companies Participate... Mortgage Refinancing Loan System to Be Established by Year-End

Kim Juhyun, Chairman of the Financial Services Commission, is delivering opening remarks at the 'Venture Business Financial Support Meeting' held on the 10th at Front1 in Mapo-gu, Seoul. Photo by Kang Jinhyung aymsdream@

Kim Joo-hyun, Chairman of the Financial Services Commission, stated on the 12th regarding the establishment of an online one-stop refinancing loan infrastructure, "I hope special attention will be paid to ensure that excessive fee burdens are not passed on to consumers, nor behaviors that undermine sound business practices and market stability in the financial industry occur."

Chairman Kim attended the 'Pre-Inspection Meeting on Refinancing Loan Infrastructure' held at the Government Seoul Office in Jongno-gu, Seoul, in the morning, and said, "I ask the financial industry and fintech sector to keep in mind that the purpose of establishing this refinancing loan infrastructure is to enhance 'consumer benefits.'"

Attending the meeting were Chairman Kim, Lee Myung-soon, Senior Deputy Governor of the Financial Supervisory Service, Park Jong-seok, President of the Korea Financial Telecommunications & Clearings Institute, Lee Seung-yeol, CEO of Hana Bank, Lee Won-duk, CEO of Woori Bank, Lee Seok-yong, CEO of NH Nonghyup Bank, Lim Soo-han, Vice President of Shinhan Bank, Jung Moon-chul, Vice President of KB Kookmin Bank, Lee Seung-geon, CEO of Viva Republica, Shin Won-geun, CEO of Kakao Pay, and Park Sang-jin, CEO of Naver Financial.

The online one-stop refinancing loan infrastructure is a system involving various financial institutions targeting personal loans. It intermediates procedures related to refinancing loans such as repayment requests, provision of necessary information like repayment amounts, and final repayment confirmation through the Korea Financial Telecommunications & Clearings Institute network. A total of 53 financial companies, including banks, are participating in this project. Authorities and the industry are currently working on the construction aiming for pilot operation by the end of this month. The authorities plan to expand the scope to include credit loans by the end of this month and mortgage loans by the end of the year.

Chairman Kim evaluated, "Through this refinancing loan infrastructure, existing loan customers of 53 financial companies can refinance with new loans at lower interest rates without visiting branches, and comparability between products will also be enhanced. I believe our financial industry has taken a significant step forward in terms of increasing consumer convenience."

He added that since the online-based refinancing loan system is the world's first case, stable management is also requested. He said, "This infrastructure is the first attempt in the world, and considering the recent uncertainties in the financial market, meticulous management and efforts are necessary for the successful establishment of this system. The government will closely monitor the operation of the system and take necessary supplementary measures."