"Will the Interest Burden Ease?" Industrial Bank of Korea Cuts Mortgage Rates by Up to 0.5 Percentage Points

[Financial News] Industrial Bank of Korea is lowering rates on in-person mortgage and jeonse deposit loans.
According to the financial sector on the 21st, IBK will expand the interest-rate discounts applied to in-person mortgage and jeonse deposit loans by up to 0.5 percentage points starting on the 22nd.
The bank is increasing the special-contract discount, which lowers rates for borrowers who meet conditions set by the bank. For mortgage loans with rates that reset every five or 10 years, the discount will be 0.5 percentage points, while other mortgage products will receive a 0.2-percentage-point reduction.
For jeonse deposit loans, rates on both fixed- and variable-rate products will be cut by 0.3 percentage points under the special-contract discount.
IBK had previously raised rates on in-person mortgage loans by 0.5 percentage points and on jeonse deposit loans by 0.2 percentage points starting June 30 to manage the overall volume of household lending.
The bank lowered rates again just three months later after the government raised its target for this year's household-loan growth from 1.5% to 3.0% under the Aug. 13 real estate measures.
Nonghyup Bank had earlier lowered the upper end of its in-person mortgage rate by 0.45 percentage points and the top end of its personal credit-loan rate by about 0.2 percentage points, effective from the 16th.

[email protected] Park Moon-soo Reporter