(1) Reasons for Proposal
The amendment aims to re-establish the recognized requirements for mid-range interest rate loan considering the cost structure by financial industry, eliminate the regulatory arbitrage related to the standards for accumulation of allowance for doubtful accounts between the household credit loan and long-term card loan of a credit card company, and stipulate the matters delegated in accordance with the revised Specialized Credit Finance Business Act and the Enforcement Decree of the Act (to be enacted on June 12, 2019).

(2) Major Provisions
A. Adjust the recognized requirements for mid-range interest rate loan subject to the deregulation of loans limit (Article 5-6)
Adjust the weighted average interest rate and the maximum interest rate reflecting the cost structure of specialized credit financial entities other than credit card companies and credit card business companies and clarify that loans handled during the relevant quarter are not recognized as mid-range interest rate loans until the end of the quarter.

B. Improve the standards for the accumulation of allowance for doubtful accounts, etc. (Article 11 (2))
Increase the obligation to accumulate the reserve for household credit loans of a credit card business company to the same level as long-term card loans.

C. Provisions on interest rate reduction request, etc. (Article 26-6)
Stipulate the requirements and procedures for interest rate reduction request delegated in accordance with Article 19-23 of the Enforcement Decree of the Specialized Credit Finance Business Act and the exceptional reasons that a specialized credit financial entity may not accept a rate reduction request.