Loan Prepayment Fee Calculator (Korea)

A prepayment fee is what a Korean bank charges when a loan is paid back before its maturity. Most contracts use the sliding method: amount repaid × fee rate × remaining days ÷ days in the fee period. The fee is largest right after the loan is made and shrinks every day until the fee period ends. Most banks count the period as the three years from the loan date; some contracts divide by the whole loan term instead, and the agreement says which.

Under Article 20(1)6 of the Financial Consumer Protection Act a lender may charge the fee only when the loan is repaid within three years of the contract, so after three years this calculator shows zero. For loans taken from 13 January 2025 the fee may only cover the lender's actual costs (funding losses and origination costs), and banks cut their rates sharply, to roughly 0.5-0.7% for mortgages and around 0.1% for credit loans. Rates still differ by bank and product, so enter the one in your agreement.

For example, 100 million won at a 0.6% fee repaid in full one year in costs about two thirds of the full 600,000 won, about 400,000 won. Products that let you repay a set amount each year without a fee (often 10% of the principal) are covered by the fee-free allowance field. Rates that change by year, fixed/variable switches and the separate rules for policy loans are not modelled.