Key summary
Compare repayment schedules, renewal risks and dated lender quotations for Korean mortgages, personal loans and credit lines.
Compare the repayment obligation before comparing a headline interest rate. A mortgage, unsecured instalment loan and revolving credit line do not provide the same repayment schedule or renewal promise. This guide does not quote current offers or guarantee approval.
What changes between loan types?
| Type | Main feature | Question to ask |
|---|---|---|
| Mortgage | Secured against property; repayment methods vary | Valuation, collateral limit, fixed/variable period and early-repayment fee? |
| Unsecured personal loan | Underwritten on borrower circumstances without property security | Amortising payments or a final lump sum? Actual term and total cost? |
| Credit line | Draw and repay within an approved facility | Interest on drawings, fees, renewal review and facility reduction conditions? |
Use dated quotations from the same comparison day. Advertised minimum rates may require conditions you do not meet. A credit line that needs periodic renewal should not be modeled as a guaranteed 30-year loan.
Compare like with like
Keep the borrowed principal, term, repayment method, rate assumption and fees consistent. A smaller monthly payment can reflect a longer term or unpaid principal at maturity rather than a lower cost. If a rate is variable, compare at least one higher-rate scenario and identify when the reset can occur.
For a simple illustration only: interest on a constant KRW 10 million balance at an assumed 6% annual rate is about KRW 50,000 for one twelfth of a year, before fees and day-count differences. Paying interest alone leaves the KRW 10 million principal to repay. This is arithmetic, not a bank offer.
Affordability is different from regulatory approval
DSR compares qualifying annual debt service with income under the lender's regulatory calculation. LTV relates lending to collateral value. Applicable limits, stress-rate rules, exemptions and foreign-borrower eligibility depend on the product and current regulation. Neither a household repayment-to-income ratio nor an LTV percentage alone proves approval.
- Ask the lender which existing debts, facility limits and stress assumptions it will count.
- Budget essential living costs, irregular income and emergency reserves separately.
- Confirm renewal, acceleration, early-repayment and collateral risks in the agreement.
- Use the lender's written estimate for the final comparison; do not substitute a generic calculator result for an offer.
Resources and tools
- Financial Services Commission (English) — official policy announcements; consult the applicable current announcement.
- Fixed monthly loan-payment calculator (English) — use one currency and your own rate and term; fees and approval are separate.
- Mortgage repayment calculator (Korean; assumptions stated on the page)
- Convert gross salary using an explicit exchange-rate assumption
Sources and method
Use the dated sources and assumptions stated in this guide. An illustration is not an employer promise, tax assessment or investment forecast. Personal eligibility and the applicable income year need separate checks.
Methods, official resources and help →Use this guide
Test a fixed monthly-payment schedule with your principal, rate and term; fees and lender approval remain separate.
Plan loan payments →Share this guide
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