After the June 27 Measures, All Non-Face-to-Face Channels Were Blocked
Partial Resumption Began at KB Kookmin Bank on July 2
Banking Sector Nears Completion of System Updates
"As Quickly as Possible"
The five major commercial banks are set to fully resume non-face-to-face mortgage loan (jumdandae) applications next week. These banks had temporarily suspended their online channels at the end of last month in order to implement the new household loan measures announced on June 27, which limit mortgage loans in the Seoul metropolitan area and other regulated regions to 600 million won.
According to the financial sector on July 3, the five major commercial banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup Bank) are finalizing improvements to their electronic systems to reflect the new regulations. A banking industry official stated, "We are working as quickly as possible to minimize inconvenience for consumers," and added, "The non-face-to-face channels could reopen as early as this week, and most will likely be fully operational by next week."
At the end of last month, commercial banks completely suspended non-face-to-face mortgage loan applications via mobile applications and the internet. This was because the government's strict household loan regulations, which focus on reducing mortgage loan limits, were implemented immediately upon announcement, leaving no time to update the electronic systems with the new rules. As a result, customers could only apply for loans by visiting bank branches, and it became difficult to receive preferential interest rates that were previously offered for online applications, causing significant inconvenience.
In response, KB Kookmin Bank reopened its non-face-to-face mortgage loan channel the previous day, partially resuming applications. For home purchase contracts signed before June 28, which are not subject to the new household loan regulations, the online channel has been normalized. Once the system updates are complete, the bank plans to expand online applications to contracts signed after that date as well.
The other banks plan to resume applications as soon as their systems are updated to reflect the new regulations. Shinhan Bank is currently working on its system, aiming to restart non-face-to-face mortgage loan applications next week. Woori Bank also plans to resume as early as this week, or as soon as possible. Hana Bank and Nonghyup Bank stated, "System updates are underway," and "The exact date has not yet been determined."
Non-face-to-face channels for credit loans and jeonse deposit loans are reopening even more quickly. Shinhan Bank and Hana Bank currently allow non-face-to-face applications for jeonse deposit loans and their main credit loan products. KB Kookmin Bank also resumed online sales on July 1. Customers can now apply for jeonse deposit loans as well as auto loans and savings-linked loans. Woori Bank and Nonghyup Bank plan to resume non-face-to-face credit loan applications as early as this week.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
