[Loan Crisis] All Banks Halt 'Non-Face-to-Face Loans' Starting Today… What to Do When 'Urgent Funds' Are Needed (Reasons, Summary)

[Loan Crisis] All Banks Halt 'Non-Face-to-Face Loans' Starting Today… What to Do When 'Urgent Funds' Are Needed (Reasons, Summary)

"I need urgent funds for the weekend, but I can't apply for a loan."
This morning (28th), anyone trying to get a mortgage or credit loan must have had the same experience. As a backlash to the **'super-strong Household Debt Management Plan'** announced by the government yesterday (27th) and **effective today**, an unprecedented 'loan crisis' has erupted, with **all domestic banks' non-face-to-face (internet/mobile) loan applications virtually 'stopped'**. How did this situation, where even real demanders who urgently need money are affected while trying to curb multi-homeowners, come about?

1. The Whole Story: Regulations Changed in 'One Day', Bank Systems Halted

The cause of this 'loan halt' situation is singular: the government ordered banks to immediately implement complex and strong new regulations without giving them even a single day to prepare.

• Banks' Dilemma: Banks must reflect the government's new regulations (LTV, DSR, move-in obligation, total limit, etc.) in their non-face-to-face loan systems. However, this is not just about changing a single phrase; it's a **large-scale IT operation that physically takes at least a week** to re-architect and verify the entire loan approval algorithm.
• The Only Option: 'Halt for Now': But the regulations are effective immediately today. Banks had no choice but to reluctantly **close down their non-face-to-face loan application channels** to prevent loans that don't comply with the new regulations from being issued.

2. Which Banks Halted Which Loans? (Current Status Summary)

Currently (28th), all domestic commercial, regional, and internet banks have halted non-face-to-face loan applications.

Category	Mortgage Loans	Credit Loans
Kookmin Bank	Available	Halted
Shinhan Bank	Halted	Available
Hana Bank	Halted	Available
Woori Bank	Halted	Halted
Nonghyup Bank	Halted	Halted
iM Bank	Halted	Halted
Kakao Bank	Halted	Halted
K Bank	Halted	Available

• Internet Banks 'Temporarily Closed': Kakao Bank and K Bank, which operate solely non-face-to-face without branches, have effectively entered a 'temporarily closed' state, with sales of their main products halted.

3. How Long Will It Last? 'At Least a Week' Expected

The banking sector expects it will take **at least a week** to develop and stabilize their IT systems. Therefore, it is highly likely that the non-face-to-face loan halt will continue throughout next week. Furthermore, one bank official stated, "There are ambiguous parts in the government's announcement, so it's difficult to sell products until clear guidelines are provided," raising concerns about the prolonged nature of the situation.

4. Consumer Damage?… 'Urgent Funds' Blocked and Interest Rates Higher

The damage from this situation is falling on innocent ordinary consumers, not the multi-homeowners the government intended to regulate.

• Weekend Urgent Fund Channels Blocked: Consumers who urgently needed funds for things like moving deposits or living expenses this weekend were hit by 'a bolt from the blue', finding no way to secure money.
• Higher Loan Interest Rates: While loans can be obtained through face-to-face channels, branch loans generally have interest rates that are **about 0.2%p higher** than non-face-to-face loans.

Policy Backlash, Only Innocent Real Demanders Suffer

While we empathize with the policy's intent to curb household debt, it seems difficult to avoid criticism that the 'hasty implementation in one day' without considering its market impact has ultimately caused inconvenience and damage to innocent real demanders.

• What do you think of the 'non-face-to-face loan halt' situation caused by the government's sudden announcement of loan regulations?
• The policy goal of curbing household debt is good, but is this method, which causes such great confusion in the market, truly the best approach?
• If anyone has been directly affected by this loan halt situation in their actual loan or home purchase plans, please share your story.

We sincerely hope that the IT systems will be normalized as soon as possible, so that no more innocent victims are created.