Hanwha Life Insurance Lowers Additional Interest Rate on Policy Loan to 1.5%

Fixed Interest Rate Product Reduced by 0.49 Percentage Points to 1.5%

Hanwha Life 63 Building.

Hanwha Life announced on the 15th that it will lower the additional interest rate applied to fixed-rate insurance policy loan contracts starting from the 17th. This is a follow-up measure following the Financial Supervisory Service's recent 'Inspection Results on the Additional Interest Rate Calculation System for Insurance Policy Loans.'

The interest rate on insurance policy loans is calculated by adding an additional interest rate to the reserve interest rate for each product. Hanwha Life has been applying an additional interest rate of 1.99% for fixed-rate products.

With this measure, the additional interest rate for fixed-rate insurance policy loans will be reduced by 0.49 percentage points to 1.5%. Approximately 400,000 existing loan customers are expected to benefit. New customers will also be subject to the reduced interest rate.

This is the result of rationalizing the interest rate calculation system applied to insurance policy loans in accordance with the supervisory authority's improvement recommendations. The additional interest rate for fixed-rate insurance policy loans, which had been set relatively high, has been adjusted to the same level as the additional interest rate for interest rate-linked insurance policy loans (1.5%).

Hanwha Life plans to individually notify the target customers in detail through AlimTalk or text messages over the next three days starting today.

A Hanwha Life official said, "The industry plans to proactively rationalize the additional interest rate calculation system and apply it quickly," adding, "We have enhanced convenience so that the interest rate reduction is automatically reflected without customers having to apply separately."