[2024 National Audit] Kim Byunghwan "Simulation of Early Repayment Fee Reform in Final Stage... Implementation Starting with Prepared Banks"

Kim Byung-hwan, Chairman of the Financial Services Commission, stated that "banks that are ready will be allowed to apply the new standards" regarding the reduction of early repayment fees.

Ahead of the planned uniform implementation of the early repayment fee reform starting January next year, the Financial Services Commission is currently in the final stages of simulation calculations based on figures received from banks. On the 24th, Cheon Jun-ho, a member of the Democratic Party of Korea, said at the National Assembly comprehensive audit, "Please take active measures to ensure that the newly reformed and reduced early repayment fees can be implemented even before January next year." In response, Chairman Kim said, "The simulation is in its final stage, and we will allow banks that are ready to apply the reformed fees."

The Financial Services Commission officially announced the early repayment fee reform last year and began full-scale preparations in March this year. Accordingly, the government revised the 'Financial Consumer Protection Supervision Regulations' in July this year, setting standards that banks can only charge fees within the scope of actual opportunity costs and administrative costs incurred when loans are repaid early starting next year. However, considering the time needed for financial sectors to revise internal regulations and build systems, the implementation is scheduled for mid-January next year. It is known that the simulation calculations have not been completed yet due to significant differences in the figures submitted by banks.

Assemblyman Cheon pointed out, "More than 70% of early repayment fee revenue is concentrated in the five major commercial banks," adding, "Especially since refinancing loans are expected to surge at the end of the year due to the decline in the base interest rate, it is urgent to establish standards for reducing actual costs."