Woori Bank Temporarily Reduces Early Repayment Penalties on Household Loans

Tax Reduction from November 1 to 30... "Extension Review Depending on the Situation"

Woori Bank announced on the 30th that it will temporarily waive the full prepayment penalty for household loan early repayments from the 1st to the 30th of next month.

Woori Bank has raised both the upper and lower limits of its 5-year fixed-rate mortgage loan interest rates by 0.11%, while Shinhan Bank plans to increase its mortgage loan interest rates by 0.05% starting from the 15th. The photo shows a Woori Bank branch in Seoul. Photo by Jinhyung Kang aymsdream@

The prepayment penalty is a cost borne by customers when repaying loans before the maturity date. Depending on the loan type, fixed interest rates apply a rate of 0.7% to 1.4%, and variable interest rates apply 0.6% to 1.2%, but these fees will be fully waived temporarily.

When customers repay loans by visiting branches or through non-face-to-face channels such as Woori WON Banking, the prepayment penalty will be automatically waived, allowing repayment without any cost burden. All household loans held before November, including credit, real estate, and jeonse loans, are eligible for the waiver. However, fund loans, Bogeumjari loans, securitized mortgage loans, and other securitized loans are excluded.

Woori Bank plans to apply the waiver benefit first during the month of November and will consider extending the period depending on the situation.

A Woori Bank official stated, “We decided to waive the prepayment penalty to alleviate the financial burden on loan customers amid difficult economic conditions,” adding, “We will continue to fulfill our social responsibility in finance through various support measures that provide practical help.”