KB Kookmin Bank to Auto-Apply Interest Above 5% on Sole Proprietor Loans to Principal

SEOUL, Yonhap, reporter Han Ji-hoon = KB Kookmin Bank said it will operate a program to reduce debt burdens for individual business loan customers by automatically applying interest amounts generated above a 5% loan rate to repayment of loan principal. The key feature is that the portion of interest paid by customers above 5% is reflected in principal repayment without a separate procedure, reducing the remaining loan burden. The measure is designed so that interest burdens for sole proprietor loan borrowers lead directly to lower principal, which may support debt management. Source: yna.co.kr.