Temporary measure to remain in effect until further notice; separate standards apply to low-income financial products and policy loans
![A view of KB Kookmin Bank headquarters [KB Kookmin Bank]](https://wimg.heraldcorp.com/news/cms/2026/06/12/news-p.v1.20251104.bcab746d5e1d4784b9821aca29ce8826_P1.png)
KB Kookmin Bank is tightening its personal credit loan limits in response to a surge in household lending.
Starting June 16, the bank will cap general personal credit loans at 100 million won (about $65,500) and limit overdraft credit lines — known locally as "minus accounts" — to 50 million won, the bank said.
The measures will remain in effect temporarily until further notice. However, some products, including low-income financial products and policy loans, may be subject to separate standards.
"We designed this plan by carefully balancing two principles: stable management of household debt and ensuring the supply of funds is centered on those with genuine financing needs," a bank official said. "We will continue to maintain a sound lending portfolio while ensuring uninterrupted support for financially vulnerable groups."
The move follows a call by financial regulators for banks to voluntarily rein in household lending amid a sharp rise in demand for debt-funded investment — a practice widely known in Korea as "bittoo."
Hana Bank, Shinhan Bank, Woori Bank and NH NongHyup Bank also announced their own credit loan management measures Thursday. Hana Bank said it would immediately cap the maximum personal credit loan amount at 100 million won regardless of a borrower's annual income. Shinhan Bank said that starting June 15, it will restrict online applications for personal credit loans on days when combined in-person and online applications exceed its internal management threshold.
Woori Bank suspended online applications for credit loan refinancing products Thursday, while NongHyup Bank plans to cut preferential interest rates on personal credit loans by 0.1 percentage point starting June 15, on top of existing daily limits on its online lending channel.
ehkim@heraldcorp.com
