Early repayment charges to be lowered from mid-January next year

Early repayment charges on loans will be lowered from mid-January next year as financial regulators revised rules, officials said Wednesday. Under the revised rules, lenders will only be allowed to collect the actual cost of making or handling the loans repaid in advance, along with any actual loss stemming from the early repayment of the loans, the Financial Services Commission (FSC) said, adding the revised rules will be implemented in mid-January of 2025. Early redemption fees are already prohibited, in principle, under related laws, but lenders have been allowed to collect such fees on loans that are fully repaid in less than three years after the loans are made, according to the FSC. Source: Yonhap News Agency