{
  "id": 648873,
  "title": "Curbs on loans drive borrowers to higher-cost savings banks",
  "url": "https://urgent.news/2026/08/12/curbs-on-loans-drive-borrowers-to-higher-cost-savings-banks",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-12T09:17:02.000Z",
  "source": {
    "name": "The Korea Times",
    "slug": "the-korea-times",
    "url": "https://www.koreatimes.co.kr/economy/20260812/curbs-on-loans-drive-borrowers-to-higher-cost-savings-banks"
  },
  "original_language": "en",
  "account": "As commercial banks tighten lending restrictions, borrowers are increasingly turning to savings banks for loans, according to industry officials. Savings banks offer higher interest rates, ranging from 9.7 percent to 16.2 percent, compared to the 3.2 percent to 7.1 percent for commercial bank loans. This shift is part of the government's efforts to curb household debt, as borrowers seek alternative financing options. In the first half of this year, savings banks issued over 491,000 mid-interest loans, a 14 percent increase from the second half of last year, making it the highest level on record. The Korea Federation of Savings Banks expects the annual tally to reach 1 million for the first time. The trend is driven by banks' tightening access to household credit, which was once the primary source of financing for consumers. In July, KB Kookmin Bank reduced the maximum mortgage available to individual borrowers nationwide from 600 million won to 300 million won, while other major lenders have also restricted online lending channels.",
  "summary": "Tighter lending restrictions at commercial banks are driving borrowers towards savings banks with significantly higher interest rates, as the government continues its efforts to curb household debt, according to industry officials. Annual interest rates on mid-interest loans for borrowers with low to medium credit scores range from 9.7 percent to 16.2 percent, which is roughly two to three times the average for comparable commercial bank loans. In the first half of this year, savings banks issued over 491,000 such loans, up 14 percent from the second half of last year and the highest level on record, according to the Korea Federation of Savings Banks. The shift is occurring as banks tighten access to household credit, traditionally the main source of financing for consumers. In July, KB Kookmin Bank halved the maximum mortgage available to individual borrowers nationwide to 300 million won from 600 million won, while other major lenders like Hana Bank have also restricted online lending channels.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "The Korea Times",
        "title": "Curbs on loans drive borrowers to higher-cost savings banks",
        "url": "https://urgent.news/2026/08/12/curbs-on-loans-drive-borrowers-to-higher-cost-savings-banks-649838",
        "published": "2026-08-12T09:32:03.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}