All Banks Halt Non-Face-to-Face Mortgage and Unsecured Loans

Banks Block Services to Update Systems
No Timeline Set for Loan Resumption

After the government announced stricter regulations on real estate loans, domestic banks suspended applications for non-face-to-face mortgage loans and unsecured loans on the 28th. This measure was taken so that banks could update their IT systems to reflect the new government lending regulations. Loan comparison services provided by platforms such as Toss and KakaoPay have also been blocked, which is expected to cause confusion among borrowers for the time being.

According to the financial industry on the 30th, five major banks?Shinhan, KB Kookmin, Hana, Woori, and NH Nonghyup?have temporarily suspended non-face-to-face loan products on their mobile applications and internet platforms.

KB Kookmin, Hana, and Woori Bank have suspended applications for both mortgage and unsecured loans. Nonghyup Bank has restricted products such as employee unsecured loans and mortgage loans. However, at Shinhan Bank, applications for unsecured loans are still available. At Hana Bank, the Hana OneQ Unsecured Loan remains accessible.

Internet-only banks without physical branches are effectively on hiatus. KakaoBank has not been accepting new applications for mortgage loans, unsecured loans, or overdraft accounts since the 28th. K Bank also suspended non-face-to-face mortgage loan applications starting on the 27th. Loan comparison and refinancing services via platforms such as Toss and KakaoPay have also been partially suspended.

Meanwhile, the Financial Supervisory Service received IT system status reports from banks the previous day. The agency stated that it will monitor each financial institution to minimize customer confusion and will take additional measures if necessary.