'Consumer Alert' Issued for Interest Refund and Debt Refinancing Voice Phishing

Payment of Financial Support Amounts by Banks... No Separate Application Procedure
Small and Medium Financial Sectors to Announce Application Procedures in Early March

Financial Supervisory Service building in Yeouido, Seoul. Photo by Younghan Heo younghan@

The Financial Supervisory Service (FSS) has issued a 'Consumer Alert,' anticipating a surge in voice phishing scams using financial sector interest refunds or refinancing loans as bait.

On the 16th, the FSS stated that since the banking sector has begun disbursing approximately 2.1 trillion KRW plus alpha (α) in loan interest refunds to vulnerable groups as part of livelihood financial support, and the small and medium financial sector plans to start providing 300 billion KRW in loan interest support benefits to small business owners from the end of March upon application, there is a possibility of an increase in related crimes, urging caution.

The FSS explained, "Fraudsters are expected to impersonate financial companies, requesting personal information under the pretext of applying for interest refunds (cashback), or demanding loan repayments and additional loans, thereby intensifying voice phishing scams." They emphasized, "Always be suspicious of such calls or messages, hang up immediately, and do not click on any addresses in text messages."

Interest refunds from banks do not require individuals to apply separately. Interest refunds under the livelihood financial support plan are provided by banks selecting eligible recipients on their own and supporting the refund amount without requiring a separate application process. The FSS explained, "Self-employed individuals and small business owners do not need to apply within a certain period to receive cashback, nor do they need to take out additional loans, so please be cautious of voice phishing."

Interest refunds from small and medium financial institutions require a separate application, but since the related agencies' computer systems are currently under development, caution is advised against smishing scams impersonating this process. The government plans to announce the application procedure separately in early March. The FSS urged, "When receiving interest refunds from small and medium financial institutions, they do not require existing loan repayments or advance payment of fees, so please be careful with related messages or calls."