00:03Korea's 20% interest cap is squeezing the borrowers it was meant to protect moneylenders
00:09are lending less and they now favor safer customers it's Tuesday October 20th let's
00:15break down what's happening in Korea's financial sector rising market rates have
00:19lifted moneylenders funding costs but the legal cap has held their loan rates at 20
00:24percent since 2021 online loan platform finder tracked the shift here's what the numbers show
00:31three point zero nine million one about two thousand three hundred dollars was the average
00:36moneylender loan this month that's down from five point two nine million one about four thousand
00:42dollars in January borrowers average credit score jumped to 607 from 566 funding costs run seven
00:51percent to nine percent and credit losses near ten percent separately Korea's five biggest bank
00:57chiefs apologized for the AI hacking cases and pledged full compensation so what does this mean for
01:03financial regulators earlier we said moneylenders now favor safer customers here's what that actually
01:09means for you 63% of their borrowers score in the 600s or lower so those shutout risk drifting to
01:16illegal lenders watch whether a rate linked interest cap gains support watch funding support for top
01:23tier moneylenders and watch illegal lending that's today's AI prism finance daily this episode was
01:31produced with AI assistance based on sole economic daily reporting and reviewed by a human editor AI prism
01:37is a one ifra award-winning series we'll be back tomorrow
