All Financial Agencies to Share Loan Information on Clients

Loan information on clients who received loans from financial agencies will be shared with national agencies starting in July.

In case of delay by one or two financial agencies, it will be disclosed to other agencies and additional loans will not be allowed. According to the Korea Federation of Banks (KFB) on the 6th, credit information was managed only when private loan was above 10 million won in one financial agency so far, but it will be expanded for every loan regardless of the scale.

Yoon Yong-Ki, the director of the KFB explained, "The market for petty loans increased significantly since last year. Therefore, the possibility of insolvency in private loans is growing and the loss is huge due to restrictions on sharing client information." and added, "The computerized system for sharing credit information is also arranged and will be executed on the first of July."

Financial agencies overall such as △ banks △ finances △ credit cards △ capital △ stocks △ mutual funds △ credit unions, and △ post offices are getting registered with the Credit Information Council led by the KFB.

Therefore, consumers who have not paid after receiving petty loans from several financial agencies might be rejected or additional interest will be charged.

Sung Ha-Woong, KFB team leader stated, "In the case of existing loans for the present, we will receive agreement at the time of extension of the loan duration and disclose to financial agencies the loan information in order to remove the possibility of violating privacy of client."

In other words, the KFB will not relax the regulation that `loan should be above than 100 million`, which was standard for sharing credit information and will withdraw the plan to report the first company bankruptcy to credit agencies.

Rae-Jeong Park ecopark@donga.com