Three Internet-only Banks Missed Some Household Loan Targets..."Cutting Limits Over Debt-Fueled Investing Concerns"

[Financial News] The three Internet-only banks fell short of some of the household loan management targets they had set through May this year.
According to data submitted by the Financial Supervisory Service to Lee Yang-su of the People Power Party, a member of the National Policy Committee, the three banks failed to fully meet some of their household loan management targets, especially for other loans such as credit loans.
K Bank had set a target to increase other loans by 201.6 billion won by the end of last month, but the actual increase came to 277.7 billion won, exceeding the target by 37.7%. Toss Bank also planned to reduce other loans by 75.8 billion won, but the decrease was only 42.2 billion won.
KakaoBank set its entire household loan growth target for this year as other loans. By the end of last month, it had executed 338.4 billion won of the target amount of 413.6 billion won.
Repayment performance for mortgage loans also varied against the targets. K Bank set a reduction target of 257.1 billion won and cut 266.8 billion won, meeting its goal. KakaoBank fell short of its reduction target of 132.1 billion won, posting only 101.9 billion won. Toss Bank exceeded its target of 316.6 billion won, with 332.6 billion won executed.
Financial authorities are now treating the rapid rise in credit loans and overdraft accounts as a key management variable, as demand for debt-fueled investing has grown alongside the overheated stock market.
In particular, the three Internet-only banks have a relatively high share of younger borrowers, raising concerns that their services could be used for debt-fueled investing by younger customers. Lee said, "Credit loans at Internet banks with easy access could fuel market overheating," adding, "Management should be strengthened to reflect the recent situation."
All three Internet-only banks are currently reducing credit loan and overdraft limits in line with the financial authorities' stance on household loan management. Toss Bank lowered its maximum credit loan limit from 300 million won to 100 million won starting on the 18th. It also cut its maximum overdraft limit from 150 million won to 50 million won. KakaoBank reduced its overdraft loan limit to a maximum of 100 million won from the 22nd. K Bank has suspended new overdraft account openings.

chord@fnnews.com Lee Hyun-jung Reporter