KakaoBank Extends Mortgage Loan Prepayment Fee Waiver for 6 Months

Kabang Extended Until End of June Next Year
Reducing Average Fee Burden of 1.15 Million Won Per Customer

KakaoBank will extend the exemption period for prepayment fees on mortgage loans by six months until the end of June next year.

On the 23rd, KakaoBank announced that through its policy of waiving prepayment fees on mortgage loans, customers have saved a total of 42.8 billion KRW in fees. KakaoBank is the only bank that has waived fees on all prepayments since launching its mortgage loan products.

Since launching mortgage loans in February 2022, KakaoBank has provided prepayment fee exemptions worth approximately 42.8 billion KRW to about 37,000 customers as of November this year. This amounts to an average fee burden relief of 1.15 million KRW per customer.

Prepayment fees are costs charged when customers repay loans before the scheduled repayment date. Among banks, only KakaoBank has applied a prepayment fee waiver policy on mortgage loans for about three years.

KakaoBank plans to decide on extending the prepayment fee exemption policy for mortgage loans every six months, taking into account upcoming revisions to supervisory regulations related to prepayment fees, loss costs, and stable fund management.

A KakaoBank representative said, "We are returning the operational cost savings achieved through innovative IT technology to customers as benefits and advantages," adding, "We will continue to strive to reduce customers' financial burdens in more areas through various competitive loan interest rates and fee waiver policies."