Korea First Bank to Cut Sharply Its Spread
Korea First Bank announced on Friday that starting May 17 it will sharply cut spread rates when lending money to individuals and businesses.This was made possible only after the government, a day earlier, decided to support the troubled bank with 3 trillion won of public money.
Recently the bank actually stopped lending money owing to a shortage of financial resources.
The premium rate offered to companies that have good credit ratings will be lowered from 5.5 to 4.0 percent. The bank also decided to levy no spread on specific term loans to firms, which is now a maximum of 2 percent.
Naturally some companies can benefit a 3.5 percent points down in their interest rate beginning May 17.
The spread to individuals will be cut to under 4 percent, currently 4.5 percent.
Shang-bok Shim : simsb@joongang.co.kr
with the Korea JoongAng Daily
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