Consumer Finance Sector to Voluntarily Regulate Excessive Loan Inducement Advertisements

Request to Member Companies to Refrain from Using Phrases Such as "LTV Limit May Be Exceeded"

The Korea Consumer Finance Association announced on July 9 that it had requested its member companies to voluntarily implement advertising self-regulation measures in line with the government's "Strengthened Household Debt Management Plan" announced on June 27.

Since the lending industry is not subject to loan regulations, there have been concerns that recent loan demand could flow into the consumer finance sector.

The association officially requested all member companies to refrain from using advertising phrases that could circumvent government policies or induce excessive borrowing.

Representative examples include phrases such as "LTV limit may be exceeded" and "DSR not applied," which are used in some companies' advertisements.

The association is continuously monitoring the websites, online advertisements, and affiliate sites of its member companies. It has been recommending the correction or suspension of advertisements containing inappropriate or potentially misleading expressions.

Jung Sungwoong, chairman of the association, stated, "The consumer finance sector is actively cooperating with government policies to manage household debt and is making every effort to comply with regulations," adding, "We will faithfully fulfill our role in providing funds to financially vulnerable groups."