Korea Loan Prepayment Fee Calculator

How it works

• Most Korean lenders charge: amount repaid × fee rate × remaining days ÷ exemption period, usually 3 years from the start date.
• Banks: since 13 Jan 2025 fees may only cover actual costs; the big five banks' average mortgage fee fell from 1.4% (fixed) / 1.2% (variable) to 0.65%.
• Cooperatives (Nonghyup, Suhyup, forestry co-ops): secured-loan fees fell from up to 2.0% to 0.6–0.9% for loans from 1 Jan 2026.
• Cuts apply only to contracts signed after each date. Some banks waive fees temporarily — check your contract.

FAQ

How is the prepayment fee calculated in Korea?

Amount × fee rate × (days left ÷ total exemption days). Repaying ₩100M at 0.65% with 2 of 3 years left costs about ₩433,000.

What are 2026 prepayment fee rates in Korea?

About 0.65% for bank mortgages signed since Jan 2025 and 0.6–0.9% for cooperative secured loans since Jan 2026.

Worked example

Example: repaying ₩100 million one year into a loan with a 0.65% fee and a 3-year fee period leaves 731 of 1,096 days, so the fee is about ₩433,531.

Common mistakes

• The fee falls every day; waiting a few weeks can reduce it.

Explanation checked on 2026-10-30 · Spotted an outdated value? Tell us