KB Kookmin Bank headquarters [Kookmin Bank]
KB Kookmin Bank headquarters [Kookmin Bank]

KB Kookmin Bank will raise interest rates on major household loan products by up to 0.53 percentage points.

According to financial industry sources, Kookmin Bank will increase rates on key personal credit loans, mortgage loans and jeonse loans by 0.06 to 0.53 percentage points starting Friday.

Rates on major personal credit loan products — including KB Credit Loan, KB Salary Transfer Credit Loan and KB Star Credit Loan — will rise by 0.1 to 0.5 percentage points. However, rates on products designed for vulnerable borrowers, such as KB Business Owner Credit Loan, KB New Hope Holssi II, KB Saitdol mid-rate loan and KB Haetsal Loan, will remain unchanged.

Rates on housing-related loans are also set to rise, with the increases focused on non-face-to-face products. The bank is adjusting those rates to bring them in line with in-person loan rates, citing concerns that lower rates on digital channels have been drawing a disproportionate share of borrowers.

The rate on the non-face-to-face KB Star Apartment Mortgage Loan (for home purchases, based on the new-balance six-month COFIX) will increase by 0.53 percentage points, while the rate on the in-person KB Housing Mortgage Loan (variable) will rise by 0.06 percentage points.

Rates on the bank's flagship jeonse loan products — KB Housing Jeonse Loan, KB Jeonse Security Loan and KB Plus Jeonse Loan — will go up by 0.14 to 0.25 percentage points. Non-face-to-face jeonse loan products will see rate increases of 0.26 to 0.49 percentage points.

A Kookmin Bank official said the measures were taken "to manage the pace of household debt growth and ensure stable management of the lending portfolio."


ehkim@heraldcorp.com