Loan prepayment fee (중도상환수수료)
Korean lenders charge a fee for early repayment that shrinks linearly over the fee period — usually zero after three years.
KRW
%
See your loan contract. Mortgages ~0.5–0.7% since 2025
months
How it works
Fee = amount × rate × (fee period − months elapsed) ÷ fee period. Almost all Korean banks use this sliding formula, and it reaches zero after three years.
Since January 2025 regulators pushed mortgage fee rates down from about 1.2–1.4% to 0.5–0.7%; loans signed earlier keep the rate in their contract.
Assumptions
- Calculated by whole months, not days
- Enter the rate from your contract; fixed vs. variable not distinguished
- Free-repayment allowances (e.g. 10% per year) not modeled
FAQ
Is a partial repayment charged?
Yes, proportionally. Many banks allow up to 10% of the balance per year fee-free — check your contract.