Proactively Reflecting the 25bp Base Rate Cut
Up to 0.30%P Reduction for Mid-Term Loans
Woori Bank will further reduce the additional interest rates on major loans in line with the Bank of Korea's base rate cut. This means that the bank will proactively lower loan interest rates without waiting for the time lag for the base rate cut to be reflected in market interest rates. As a result, loan customers will be able to reduce their interest burden doubly, benefiting from both the base rate cut and the additional interest rate reduction.
On the 26th, Woori Bank announced that it will lower the interest rates by up to 0.30 percentage points for mid-term loans, 0.25 percentage points for mortgage loans, and 0.20 percentage points for salaried worker credit loans.
Woori Bank is implementing the loan interest rate cuts even at the cost of narrowing its net interest margin (NIM), based on the judgment that reducing the interest burden on self-employed individuals and vulnerable groups is essential to revive private consumption and investment amid the visible decline in economic growth.
First, to ease the burden on small and medium-sized enterprises (SMEs) struggling due to the recent high exchange rates, the bank will also reduce interest rates on SME loans. Starting from early March, the authority of branch managers to approve SME loan interest rate cuts will be expanded by 0.30 percentage points to accelerate loan execution, while preferential interest rates will also be offered.
From the 28th, the additional interest rate on newly applied 5-year variable (periodic) mortgage loans will be reduced by 0.25 percentage points. On the 21st, Woori Bank had already expanded the maximum preferential mortgage loan interest rate by 0.1 percentage points (from 1.0% to 1.1%) and proactively implemented an additional 0.2 percentage point preferential rate for families with three or more children.
Additionally, starting early March, the interest rate on the 'Woori WON Transfer Salaried Worker Loan' will be lowered by 0.20 percentage points to ease the credit loan interest burden on salaried workers. This measure will apply the same interest rate reduction effect not only to new loan customers but also to existing customers when extending their loan periods.
A Woori Bank official stated, "Along with proactive interest rate cuts, we will continue to promote the reduction of financial costs for customers facing difficulties due to the economic downturn, in line with the trend of market interest rate reductions. We will also faithfully prepare win-win finance and social contribution programs to support our customers and fulfill the social role of finance."
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