Personal overdraft borrowing at major Korean banks increased by about 1.3 trillion won ($875 million) in March as investors borrowed money to buy stocks after a market drop triggered by clashes between the United States and Iran.
Banks are easing loan regulations as household debt slumps.
Kakao Bank on Thursday announced a temporary halt in the opening of overdraft accounts as major banks limit individual credit lines due to concern about rapidly increasing household debt.
Korea is considering tightening rules on overdrafts as a sharp rise in lending adds to concerns over the country's already high household debt, the finance minister said Monday.
K bank released on Monday a series of credit loan products after a year since the online bank halted its lending services due to the lack of capital.
Korea JoongAng Daily Sitemap
