KB Kookmin Bank to Use Interest Above 5% to Repay Business Loan Principal

KB Kookmin Bank said it will operate a program that automatically uses interest amounts above an annual 5% on sole proprietor loans to repay loan principal. The measure is intended to ease the debt burden on individual business owners facing high interest costs. The program applies to KB Kookmin Bank’s sole proprietor loans, with the portion of interest exceeding 5% used for principal repayment. Borrowers can expect their principal to fall by the amount of excess interest without preparing additional repayment funds. The move is drawing attention as part of efforts in the banking sector to ease financial pressure on self-employed borrowers. Source: yna.co.kr.