KB Kookmin Bank said Friday it will supply a total of 1.53 trillion won ($1.1 billion) in private mid-rate loans this year.
The bank newly extended 306.8 billion won in private mid-rate loans in the first quarter. The figure accounts for about 40% of the 795.9 billion won total supplied by South Korea's five major commercial banks, the largest among the banking sector.
Mid-rate loans are divided into private mid-rate loans, which financial institutions supply without guarantee agencies, and "Sait-dol Loans," a policy product based on guarantees from Seoul Guarantee Insurance. Private mid-rate loans are credit loans extended to borrowers in the bottom 50% of personal credit scores, with the current interest rate ceiling for the banking sector set at 7.44% per year.
KB is also actively pursuing loan refinancing. The "KB Kookmin Leap Loan," launched in March, helps borrowers switch high-interest credit loans from non-bank financial institutions to lower-interest options. By removing restrictions on annual income and length of employment, the product extends benefits to self-employed individuals and freelancers who have difficulty proving income.
Kookmin Bank plans to soon introduce the "Youth-Only New Hope Holssi II" product, which provides funding of up to 5 million won to young people aged 34 or younger. The product is expected to offer lower interest rates than the existing New Hope Holssi II, which carries a maximum rate of 9.5% per year. Borrowers who repay faithfully for more than one year will receive higher loan limits, and those who complete financial education courses at institutions such as the Korea Inclusive Finance Agency will be granted interest rate reductions.
