Kakao Bank tightens lending, cuts overdraft limit to 100 million won

Kakao Bank is tightening its lending policies by significantly reducing the maximum limit for its overdraft loans. Starting June 22, the limit will be lowered from 240 million won to 100 million won. For customers with low usage of their current limits, the bank may also reduce their credit line upon renewal. This decision comes amid a surge in demand for credit loans, fueled by a recent boom in stock market investments. Kakao Bank's move mirrors similar actions taken by other internet-only banks, including Toss Bank and K Bank, which have also begun to strengthen their credit loan management. The widespread tightening among internet banks indicates a broader trend in response to financial authorities' ongoing push to manage household debt levels. Additionally, Kakao Bank will maintain its daily limit on new credit loan applications, restricting new loans if internal management standards are exceeded, though loans for individuals with mid-to-low credit scores are excluded from this management.