(1) Reasons for Proposal
Follow-up measures in accordance with the “Measures to Support Vulnerable and Overdue Borrowers (January 18, 2018)” to reflect changes in the overdue interest rate’s upper limit and the application of an alternative index in the absence of a loan interest rate

(2) Major Provisions
A. Lower the upper limit of the overdue interest rate to a reasonable level
Protect the financial consumer by lowering the upper limit of the credit financial institution’s overdue interest rate to a reasonable level (3%).

B. Propose a reasonable alternative index in the absence of a loan interest rate
Propose a reasonable alternative index (An interest rate that considers the financial company’s procurement cost, the individual’s credit rating, and the statutory interest rate from the “Commercial Law” or the mutual finance’s private loan interest rate from the Bank of Korea’s non-bank financial institutions’ weighted average lending rate) that can be applied in the absence of a loan interest rate when a loan is overdue.