KakaoBank has launched a new account designed to protect minimum living expenses even in the event of seizure. The policy-linked product supports financially vulnerable groups and offers seizure protection for deposits of up to 2.5 million won per month. Customers aged 14 and older can sign up, but the account can be opened at only one financial institution. KakaoBank will provide a 2 percent base interest rate through the end of this year and will run a promotional event tied to sign-ups.

A stock market rally is fuelling renewed debt-backed investing by retail investors, pushing up overdraft credit line balances at South Korea’s major banks. Balances at the five biggest lenders rose from 39 trillion won at end-April to above 41 trillion won in May, the highest in about 3 years and 4 months. Banks see profit opportunities among high-credit borrowers but face potential pressure from regulators if household lending keeps rising.