Rising household debt and pressure on non-bank lenders heighten concerns over risks of political intervention in lending
President Lee Jae-myung on Tuesday criticized the 15.9% interest rate charged on guaranteed loans for South Korean borrowers with the lowest credit ratings, calling it “too cruel” and questioning how such terms could be considered support for ordinary citizens. “Finance seems to be the cruelest sector,” Lee said during a Cabinet meeting broadcast live on television and YouTube.
Lee made the remarks after asking finance minister Koo Yun-cheol about the rates during a report on financial support measures. He urged a “fundamental rethink” of lending practices, suggesting that high-credit clients or banks could shoulder a slightly greater share to reduce borrowing costs for the most vulnerable.
President Lee Jae-myung on Tuesday criticized the 15.9% interest rate charged on guaranteed loans for South Korean borrowers with the lowest credit ratings, calling it “too cruel” and questioning how such terms could be considered support for ordinary citizens. “Finance seems to be the cruelest sector,” Lee said during a Cabinet meeting broadcast live on television and YouTube.
Lee made the remarks after asking finance minister Koo Yun-cheol about the rates during a report on financial support measures. He urged a “fundamental rethink” of lending practices, suggesting that high-credit clients or banks could shoulder a slightly greater share to reduce borrowing costs for the most vulnerable.
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