Woori Bank Halts Online Credit Loan Refinancing Amid 'Debt-to-Invest' Surge

Amidst a surge in household debt, largely driven by increased 'debt-to-invest' (bitu) activities in the stock market, Woori Bank has announced measures to manage its credit loan portfolio. Starting June 12, the bank will suspend new applications for its non-face-to-face credit loan refinancing product. This decision reflects growing concerns within the banking sector about the rapid expansion of household lending.

While customers will still be able to apply for new credit loans and conduct refinancing transactions in person at bank branches, the suspension specifically targets online applications for refinancing. Furthermore, Woori Bank is exploring ways to block loan applications originating from various loan comparison platforms, including Kakao Pay, Naver Pay, Finda, Toss, and Bank Salad. This could involve preventing Woori Bank's loan products from being recommended on these platforms or blocking direct links to the bank's mobile banking app.

Other major commercial banks are reportedly considering similar self-regulatory measures for credit loans. The banking industry is closely monitoring the trend of increasing household debt, which has been exacerbated by individuals borrowing money to invest in the volatile stock market. The 'bitu' phenomenon, where investors take out loans to finance their investments, has become a significant concern for financial institutions aiming to maintain stability in the lending market.