Kakao Pay Launches "Automatic Interest Rate Reduction Application" Service

Automatically Exercising the Right to Request Interest Rate Reductions When Credit Status Improves

Kakao Pay announced on the 4th that it will launch an "Automatic Interest Rate Reduction Application" service, which captures the optimal timing to lower a user's loan interest rate and automatically submits the application.

The "Automatic Interest Rate Reduction Application" service allows users to register just once, after which the system detects improvements in their credit status and automatically exercises their right to request an interest rate reduction at the optimal time to lower interest costs. This eliminates the hassle of users having to check changes in their credit status themselves and apply one by one to each financial institution.

When users first register, they select one reason for application, such as an increase in credit score, an increase in income, or a decrease in debt. After that, based on information identified through MyData, the system automatically selects the most appropriate reason and submits applications at the shortest possible interval.

Post-management functions for user convenience have also been strengthened. Even if an interest rate reduction request is rejected, the service analyzes the reasons for non-acceptance provided by the financial institution and offers specific credit improvement guidelines that can increase the approval probability for the next application. Even users who do not currently have any loans can sign up in advance and, once they take out a loan in the future, immediately receive interest rate management linked to changes in their credit status from that point on.

The service is available in the "Asset Management" category in the All tab on the Kakao Pay app or on the KakaoTalk Kakao Pay home screen, and can also be accessed by selecting the magnifying glass icon in the upper right corner and searching for the service name.

Kakao Pay stated, "The Automatic Interest Rate Reduction Application service protects users' rights by capturing changes in their credit status and acting at the earliest possible timing," adding, "Through data-based financial innovation that users can tangibly experience, we will build a user-centric financial ecosystem across the entire process, from loan execution to post-loan interest rate management."