Kakaobank has intensified the competition among internet banks by launching new loans at 6 a.m. every day. While traditional banks gradually reduced their loan limits with restrictions on amounts and interest rates, Kakaobank offers instant loans without any limits, drawing increasing attention from consumers.
In the first section, the current status of online banks is outlined. Major banks such as KB, Shinhan, Hana, Woori, and Nonghyup have lowered their loan limits—from 600 million to 300 million won, and from 3 billion to 1 billion won—and some have halted new loans altogether. Despite these measures, Kakaobank has continued to provide loans at 6 a.m. every day without any restrictions. Online communities quickly share reports that the loan is completed within a minute of signing, further expanding competition.
The second section examines how Kakaobank’s “Open Run” phenomenon affects traditional banks. Banks observe that Kakaobank imposes no restrictions on its loan volume and has increased its loan amount, creating a “biput” (i.e., “investment through debt”) effect that is difficult to manage. Some of the 2024 target increase in loan amounts—396.5 billion won—have already approached the goal with 300 billion won from new loans alone.
The final section looks ahead at internet banks’ strategies and how traditional banks may respond. It notes that Kakaobank has set a minimum interest rate of 4.78% for new loans, limiting the loan amount to 100 million won, and suggests that other internet banks could take similar measures. As competition continues, concerns about the stability of the financial market arise.