A situation has arisen in which borrowers with high credit scores pay more interest on loans than those with low credit scores. This is the result of expanding financial support, such as interest benefits, for vulnerable groups.
According to lending rate statistics by credit score from the Credit Rating Agency of the Korea Federation of Banks on the 16th, NH NongHyup Bank's average rate for borrowers with credit scores of 601–650 was 6.19% per year, higher than the average rate for borrowers with scores of 600 or below (5.98%). At Shinhan Bank, the rate for 601–605 (7.72%) was higher than for 600 or below (7.49%), and at IBK Industrial Bank, the rate for 601–650 (5.13%) was higher than for 600 or below (4.73%). In the statistics, 600 or below is the lowest credit score band, and 601–650 is one level higher.
The lending rate is calculated to be lower the higher the creditworthiness. However, as banks cut rates on certain products to help vulnerable groups such as low-credit borrowers, the rates were reversed in the statistics. For example, KB Kookmin Bank lowered the rate on the inclusive finance product "KB Sae Heemang Holssi II" from the previous 10.5% to 9.5%.
Some note that even if it is a measure to reduce the financial expense of vulnerable groups, borrowers who repaid on time and maintained their credit scores are being discriminated against in reverse. Earlier, on the 13th, President Lee Jae-myung said at a meeting of senior secretaries, "Hasn't the current financial system become a financial caste system that forces expensive interest on the poor?"