Insight · Korean Financial Regulation

What Changed: Korea's Enforcement Decree of the Banking Act (2026)

4 August 2026 · KFR Gateway (H&S Partners)

Korea's Enforcement Decree of the Banking Act — the Presidential Decree that implements the Banking Act — was amended by Presidential Decree No. 36417, which took effect on 1 July 2026. The consolidated English translation available from Korea's official channels reflected the Decree only up to an earlier version (No. 35811, October 2025), so the two most recent changes are worth flagging.

1. New Article 18-5 — Calculation of loan interest rates

A new Article 18-5 was inserted to implement Article 30-3 of the Banking Act (calculation of loan interest rates), which itself was newly added and took effect on 1 July 2026. The new Decree provision prescribes the ratios used in the calculation:

• for loans handled with the guarantee of a fund, etc. under Article 30-3 (2) of the Act: 50/100; and

• for other loans: 0/100.

2. Article 30 deleted

Article 30 (Re-examination of regulation) was deleted, with effect from 24 March 2026. Article numbering is otherwise unchanged.

Reading it in context

The Enforcement Decree is best read together with the Banking Act itself — in particular the Act's new Article 30-3, which the Decree's Article 18-5 implements. Both changes are part of the same 2026 package on loan interest-rate calculation.