Lending rate cap to be lowered to 24 pct from next January

SEOUL-- South Korea's maximum interest rate that private lenders can charge customers will be lowered to 24 percent per annum from January 2018, the nation's financial regulator said Sunday.

In a statement, the Financial Services Commission (FSC) said it will promulgate an ordinance in October to lower the maximum legal lending rate with the change to come into force after a three-month grade period.

The move is aimed at helping ease interest rate burdens for desperate borrowers, according to the FSS.

Currently, private lenders can charge a maximum 27.9 percent interest rate per annum by law, but the ceiling is often disregarded.

FSS officials have said the regulator will launch a crackdown against private lenders caught breaking the law.

Source: Yonhap News Agency

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