Relief of Interest Burden for Small Business Owners and Other Livelihood Finance Support
Difficult to Compare with General Personal Loan Products
Revision of Supervisory Regulation Enforcement Rules...Targeting December Implementation
On the 9th, officials were busy moving in the corridor of the Financial Services Commission at the Government Seoul Office in Jongno-gu, Seoul, where financial authorities decided to include mortgage loans (Judaemae) in the 'debt refinancing' infrastructure scheduled to launch in May by the end of the year. Financial authorities explained that they aim to reduce the interest burden on mortgage loans by establishing a debt refinancing platform that allows users to compare financial sector loan interest rates at a glance and switch loans easily. Photo by Dongju Yoon doso7@
The financial authorities are promoting comparative disclosure of loan products for individual business owners to alleviate interest rate burdens on small business owners and support livelihood finance.
On the 22nd, the financial authorities announced that they will establish the basis for comparative disclosure of loan products for individual business owners by the Financial Supervisory Service through amendments to the detailed enforcement rules of the Financial Consumer Protection Supervision Regulations. This aims to help busy individual business owners easily compare loan interest rates and make rational choices at a glance.
So far, individual business owner loans have had diverse characteristics by product, unlike general personal loan products, making it difficult for busy individual business owners to directly compare them.
The amended enforcement rules will be announced for revision until the 13th of next month and are planned to be implemented in early December. From the end of December, it is expected that comparative disclosure of loan products for individual business owners will be possible through the Financial Supervisory Service's 'One-Stop Financial Products' website.
The comparative disclosure will present various information such as the average interest rates and repayment methods of loan products sold by each financial company, enabling individual business owners to select the most advantageous product for themselves.
Once comparative disclosure is implemented, individual business owners will be able to make rational loan product choices suited to their circumstances and purposes through the comparative disclosure, reducing the time and cost required for comparison. It is also expected to improve financial services by promoting healthy market competition.
A financial authority official explained, "We plan to carefully prepare to ensure that comparative disclosure of loan products for individual business owners can be launched smoothly through collaboration with each association and central organization."
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