Financial Authorities Inspect NH Central Amid Surge in Secondary Lender Loans

Last month, as household loans from secondary financial institutions surged, financial authorities began on-site inspections of the secondary financial sector, starting with NH Central Headquarters.

According to financial authorities and Yonhap News on the 12th, the Financial Supervisory Service (FSS) deployed personnel to NH Central Headquarters from this day to investigate the handling status of household loans.

This comes just one day after the financial authorities announced their inspection plans for the secondary financial sector during the “Household Debt Inspection Meeting.”

Although NH Central Headquarters saw an increase in household loans of only 2 billion KRW due to a decline in non-housing collateral loans, it was reported that home mortgage loans rose by several billion KRW.

The FSS also plans to closely examine the status of household loans during the joint government audit of the National Credit Union Federation of Korea (Saemaul Geumgo), which begins on the 18th.

It was revealed that household loans at Saemaul Geumgo alone surged by about 1 trillion KRW last month.

Despite financial authorities strongly urging secondary financial institutions like NH Central Headquarters and Saemaul Geumgo to curb household lending, a competitive atmosphere for loan sales persists on-site.

Notably, there are concerns that the competition for balance loans for the anticipated multi-trillion KRW Olympic Park Foreon (Dunchon Jugong Reconstruction Complex) in Gangdong-gu, Seoul, may further stimulate the growth of household loans.

Some branches of Saemaul Geumgo have offered interest rates comparable to commercial banks for prospective residents of Olympic Park Foreon, prompting the central association of Saemaul Geumgo to request individual branches to set rates similar to those of banks.

As a result, one branch of Saemaul Geumgo, which initially offered a minimum annual interest rate of 4.35% for six-month variable-rate loans, raised it to 4.55%, causing a minor incident.


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Financial Authorities Inspect NH Central Amid Surge in Secondary Lender Loans