Kim Byung-hwan "Loan prepayment fee, room for a half cut"

Kim Byung-hwan, chairman of the Financial Services Commission, said there is room for a half cut in relation to the reorganization of prepayment fees, which are set to take effect in January next year.

Chairman of the states Affairs Commission Kim said at a monthly meeting of reporters today (30th) that the results of simulations on some of the major commercial banks were tentatively confirmed like this.

Specifically, in the case of mortgage loans, it is expected that there will be room to lower the prepayment fee, which is currently 1.2 to 1.4%, to the level of 0.6 to 0.7%.

It also added that credit loans are currently between 0.6 and 0.8%, but are likely to be adjusted to around 0.4%.

However, he explained that verification work is needed because there are some deviations, and that more accurate information can be released only when it is completed next month.

At the same time, he stressed that the entire banking sector will be implemented from January next year, and banks that have completed preparations quickly will implement it even before then.