Banks suspend non-face-to-face loans

[Anchor]

As the tightened loan regulations began today (Jun. 28), banks have shut down their online and smartphone loan applications.

This restriction on non-face-to-face loan applications is just the beginning.

How far will the banks go to keep their loan thresholds in line with the government's regulations?

Reporter Hwang Hyun-kyu has the story.

[Report]

This is the mobile app of a major bank.

When attempting to apply for a mortgage loan, this notice pops up.

"Non-face-to-face loan application restricted," "Please visit a branch." On the first day of the government's strengthened loan regulations, major banks uniformly suspended non-face-to-face loans.

Kookmin Bank suspended credit loans, while Hana Bank and Shinhan Bank suspended mortgage loans. Woori Bank and Nonghyup also halted non-face-to-face applications for both credit and mortgage loans.

Even local banks and internet banks like Kakao Bank temporarily suspended non-face-to-face loans.

[Loan Applicant: "It's not easy to find time to go to the bank on weekdays, but now that I can't do it non-face-to-face when I need money on the weekend, it's frustrating."]

The banking sector stated that the abrupt implementation of the loan regulations left them with no time to adjust their systems, so they first blocked non-face-to-face channels.

[Bank Official/Voice Altered: "The (loan) limits have changed. The main reason is to change the system in accordance with the new regulations."]

The banking sector has announced that the server updates will be completed within a week at the latest.

However, if one bank starts non-face-to-face applications before others, there is a possibility of a rush for loans, making the timing of resumption a matter of competition among banks.

The government has tightened the household loan total target for the second half of the year to half of the original amount and stated that it will monitor loan processing status daily within the financial sector.

About 80% of credit loan applications are made non-face-to-face.

In the case of mortgage loans, about 10% are made non-face-to-face.

To get a loan immediately, the only option is to go to a branch.

Loans applied for in person, face-to-face, have higher interest rates than non-face-to-face loans.

This is KBS News, Hwang Hyun-kyu.