Episode Description:<br />Korea's lenders are cutting loan fees and seeing early delinquency signals—a squeeze from both competition and regulation.<br />KB Financial Group lowered early repayment fees on credit loans as borrowers seek cheaper refinancing options. Corporate loan delinquency rates edged up 0.08 percentage points in Q2—the first increase after five quarters of decline—signaling potential credit stress ahead. The Bank of Korea held the base rate at 3.5%, while household debt growth continued at 2.1% year-over-year, keeping pressure on banks' net interest margins.<br />Sources:<br />* KB Financial Group Cuts Early Repayment Fees on Credit Loans — Seoul Economic Daily, July 20 2026<br />* Corporate Loan Delinquency Rates Rise 0.08%P in Second Quarter — Seoul Economic Daily, July 20 2026<br />* Bank of Korea Holds Rates as Financial System Faces Margin Compression — Seoul Economic Daily, July 20 2026<br />About AI PRISM:<br />AI PRISM is Seoul Economic Daily's WAN-IFRA award-winning newsroom AI series, delivering Korean economic news adapted for global audiences. Episodes are produced with AI assistance and reviewed by a human editor.<br />Tags:<br />#BankMargins #KoreanFinance #CreditRisk #DSR #KOSPI #AIPRISM #SeoulEconomicDaily #WANIFRA
