Finance

Shinhan Bank tightens credit loan controls, limits non-face-to-face applications

Shinhan Bank will tighten management of credit loans in response to rising household debt. It will temporarily adjust the volume of non-face-to-face credit loan applications, limiting such requests when combined daily face-to-face and non-face-to-face intake exceeds internal standards. Support products for financially vulnerable groups will be excluded. The bank will also strengthen overdraft limit management, cutting limits by up to 20 percent at renewal for certain low-utilisation accounts.

Finance

Household loans jump 9.3 trillion won in a month as regulators trigger emergency management

Household loans across South Korea’s financial sector rose 9.3 trillion won in May, sharply above April’s increase and a year earlier. Mortgage lending growth slowed, but other loans, including credit loans, swung to an increase and drove the overall rise. Regulators held a debt monitoring meeting and plan weekly checks on firms that miss management targets. Banks will pursue voluntary measures such as cutting new credit loan limits for high earners.