KB Kookmin Bank announced on May 29 that it will raise interest rates on major household loans including credit loans and mortgage loans starting May 31. The bank is adjusting rates to maintain an appropriate household credit portfolio, with particular focus on balancing rates between in-person and non-face-to-face loan products. Non-face-to-face products had been offered at lower rates, raising concerns about excessive concentration in these channels.
KB Kookmin Bank Raises Credit Loan Rates by 10-50 Basis Points
The bank will increase rates on major credit loan products by 10 to 50 basis points. Affected products include KB Credit Loan, KB Salary Transfer Credit Loan, and KB Star Credit Loan.
Mortgage and Jeonse Loan Rates Adjusted with Channel-Based Differentiation
KB Kookmin Bank will raise interest rates on mortgage loans and jeonse (housing deposit) loans with different adjustments based on service channel. The in-person product "KB Mortgage Loan Variable" will see a 6 basis point increase for purchase funds based on the new 6-month COFIX. The non-face-to-face product "KB Star Apartment Mortgage Loan" will increase by 53 basis points for purchase funds based on the new balance 6-month COFIX.
For jeonse loans, in-person products will increase by up to 25 basis points, while non-face-to-face products will rise by 49 basis points. Representative products including KB Housing Jeonse Loan, KB Jeonse Deposit Security Loan, and KB Plus Jeonse Loan will see rate increases of 14 to 25 basis points. Non-face-to-face jeonse loan products will increase by 26 to 49 basis points.
Vulnerable Group Loan Products Excluded from Rate Increase
Loan products targeting individual business owners such as KB Business Owner Support Loan, and products for vulnerable groups including KB New Hope Holssi II, KB Saitdol Mid-Rate Loan, and KB Haetsalloan are excluded from this rate adjustment.
Bank Explains Portfolio Management Strategy Behind Rate Adjustments
A KB Kookmin Bank official stated that the bank is adjusting loan rates on major household loan products to maintain an appropriate household credit portfolio. The official explained that non-face-to-face exclusive products, which had lower rates compared to in-person loan products and raised concentration concerns, will be adjusted to similar levels as in-person products, while rate increases for in-person exclusive loan products have been minimized.
FAQ
What loan rate increases did KB Kookmin Bank announce on May 29?
KB Kookmin Bank announced rate increases of 10-50 basis points on major credit loans, 6-53 basis points on mortgage loans depending on service channel, and 14-49 basis points on jeonse loans starting May 31.
Why is KB Kookmin Bank raising household loan rates?
The bank is adjusting rates to maintain an appropriate household credit portfolio and to balance rates between in-person and non-face-to-face loan products, as non-face-to-face products had lower rates causing concentration concerns.
Which KB Kookmin Bank loan products are excluded from the rate increase?
Loan products targeting individual business owners such as KB Business Owner Support Loan and products for vulnerable groups including KB New Hope Holssi II, KB Saitdol Mid-Rate Loan, and KB Haetsalloan are excluded from this rate adjustment.
