Suspension of loan principal and interest payments for small business and corner shops is being considered by the Financial Services Commission (FSC).
KakaoBank will increase loans to people with poor credit in the latter half of the year.
Major tech firms have started to competitively loan money to small business owners who used to be in a conventional finance blind spot.
Financial Services Commission Chairman Eun Sung-soo, far right, tours the SK hynix plant in Icheon, Gyeonggi, on Tuesday, along with the heads of state-run banks.
Kakao Bank on Thursday announced a temporary halt in the opening of overdraft accounts as major banks limit individual credit lines due to concern about rapidly increasing household debt.
The number of newlyweds that owned homes in 2019 decreased compared to a year earlier, and the amount of their outstanding loans increased — showing the impact of rising real estate prices.
Bank lending to households hit a record last month on a rush ahead of tighter unsecured loan restrictions and as money was secured by those fearing more pandemic-related uncertainty.
A loan counter sits empty at a bank located in Seoul on Monday, the first day that government restrictions on unsecured loans went into effect.
Short-term personal loans ranging from 100,000 won ($90.34) to 3 million won, are becoming more accessible and popular in Korea.