Banks Tighten Credit Loans Amid 'Debt-Fueled Investment' Frenzy: Limit Capped at 100 Million Won

As stock market volatility has recently increased, banks are tightening credit loans in response to a rise in so-called "debt-fueled investments."

Analysts suggest that banks are taking preemptive measures following concerns from financial authorities that excessive leveraged investing could further amplify stock market volatility and increase financial risks for individual investors.

Hana Bank announced that starting today (June 12), it will limit the credit loan ceiling for high-income earners.

For new credit loan applications, the bank has decided to cap the maximum amount an individual can borrow at 100 million won, regardless of their annual income.

The bank also plans to strengthen reductions in unused credit limits when renewing overdraft accounts.

Shinhan Bank also announced that it will implement "preemptive credit loan management measures" starting June 15.

Shinhan Bank will restrict non-face-to-face credit loan applications if the daily total of face-to-face and non-face-to-face credit loan applications exceeds internal management thresholds.

Products intended to support financially vulnerable groups, such as microfinance loans and win-win refinancing loans, will be excluded from these application restrictions.

Previously, Woori Bank also announced that it would suspend applications for non-face-to-face credit loan refinancing products and block all credit loan applications coming through loan comparison platforms such as Naver Pay and Toss.

These preemptive measures follow recent discussions between the Financial Services Commission and commercial banks regarding the rise in credit loans, and it is reported that other commercial banks are also considering the introduction of voluntary credit loan management plans.

The Financial Services Commission previously stated at a joint household debt inspection meeting with relevant agencies that, as household loans—centered on credit loans—continue to rise, it would activate an emergency management system and conduct weekly intensive inspections of financial institutions that fail to meet their targets.

Reported by Kim Taewon | Video by Kim Na-on | Graphics by Yang Hye-min | Produced by SBS Digital News
※ Please note: This article was translated by AI and may contain errors.