Prepayment fees on loan repayments to drop by more than half

A passerby walks past ATMs in Yongsan District, central Seoul, on Sunday. 

Starting Monday, prepayment fees for loan repayments will be reduced by more than half. According to the Financial Services Commission's revised policy, the fees for fixed rate mortgage loans will go down from 1.43 percent to 0.56 percent, while the fees for unsecured loans at variable rates will be reduced to 0.11 percent from 0.83 percent.