Overseer Vows to Curb Soaring Interest Rates On Credit Card Loans

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Overseer Vows to Curb Soaring Interest Rates On Credit Card Loans

Reporting before the National Assembly Monday, the head of the nation's top financial agency made it clear that he will come up with plans to contain skyrocketing interest rates on credit card loans and cash advances.

Annual interest rates for overdue card loans stood at 28-29 percent while the rates for cash advances posted 24-29 percent.

In 1999, both card loans and cash advances totaled 50 trillion won ($40 billion) but the amount soared to 155 trillion won last year, increasing the number of delinquent household borrowers.

"We are investigating credit card companies right now," said Lee Keun-young, chairman of the Financial Supervisory Commission. "Later on, we will also educate the management and staff of the card companies to prevent them from issuing credit cards recklessly to minorities and elderly people," the head of the financial regulator said.


by Yi Jung-jae

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