Under Article 30-2 of the Banking Act of South Korea, borrowers who experience improvements in their creditworthiness (promotions, salary increases, or debt repayment) possess a statutory Interest Rate Reduction Right (금리인하요구권) to lower interest rates on existing bank loans.
💡 3-Minute BriefCore Fact Sheet
- Legal Entitlement: No penalty, credit score deduction, or bank friction occurs upon applying.
- Primary Triggers: Salary growth, KCB/NICE credit score improvement, promotion, or obtaining professional credentials.
- Applicable Loans: Credit lines (minus bankbooks), variable-rate mortgages, and commercial jeonse loans. (Government policy loans excluded).
- Decision Timeline: Financial institutions must notify approval within 10 business days.