South Korean banks overcharge borrowers

South Korea's major banks have been charging borrowers higher interest rates over the past few weeks.

Interest was miscalculated for about 40,800 loans issued by seven banks: KB Kookmin, Woori, Shinhan, Hana, Nonghyup, Korea Exchange and Industrial Bank of Korea.

Woori Bank has the biggest number of overpriced loans with 21,000 cases, followed by Hana with 6,250, Nonhyup with 4,530, KB Kookmin with 4,350 and Shinhan with 3,700.

The erroneous disclosure of an index has been linked to overpriced loan interest rates. The cost of funds index, a barometer for the benchmark interest rate, published on Sept. 17 was based on miscalculated data.

The banking lobby group said the mishap was unintentional and admitted that it took several days to issue a re-disclosure after detecting the fault.

“We detected the misstatement on Sept. 27 and made it public on Oct. 8,” a KFB official said.

The Financial Supervisory Service has launched a probe into the incident as to whether there was a technical defect or other factors.

For more.

Also Read

Tighter policies drag South Korean household loan growth in September

SME loans in Taiwan rose in August

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit