Korea Loan Withdrawal Deadline & Prepayment Net Cost Calculator
Check the Korean loan withdrawal window, 2026 holidays and same-date settlement quotes to compare upfront cash, refunds and forward net costs.
Korea 2026 rules · Verified 2026-09-25
The usual 14-day period uses calendar days. Notice and return of principal, interest and costs are required within the period. Results do not confirm completion with the lender.
1. Eligibility and dates
Business or professional status, linked peer-to-peer loans and credit cards require separate review. Multiple disbursements and partial withdrawal are outside this model.
Default 14 days. Enter a longer period only if agreed with the lender.
2026 weekends and statutory holidays are included. Add only newly designated public holidays in YYYY-MM-DD format. A branch closure alone does not extend the legal deadline.
2. Lender settlement quotes for the same date
Leave unknown amounts blank; enter 0 for a confirmed zero. Do not count a refund already offset against an entered interest or cost amount.
The same remaining principal is returned in full under both options.
3. Deadline and net cost comparison
Confirm ordinary-consumer status, product eligibility and the agreed period with the lender.
Enter contract, document receipt (or confirmed exception), disbursement and period.
Enter the planned date of returning the funds.
Cost comparison pending: enter every confirmed amount. A known zero differs from an unknown cost.
Confirm and file with the lender
Confirm eligibility, document receipt and any longer agreed period.
Obtain both settlement quotes for the same date and arrange the upfront cash.
Before the lender cutoff, send notice, notify the lender of dispatch, return principal, interest and costs, and retain evidence.
Confirm completion, refunds and credit-record handling with the lender. Credit-score effects are not predicted.
This calculator helps an individual borrower in Korea compare loan withdrawal with ordinary early repayment after their funding plans change. Missing the withdrawal deadline may expose you to a prepayment fee, but withdrawal can also require reimbursement of third-party costs already paid by the lender. When prepayment is free, ordinary repayment may have the lower forward cost.
The model covers full return of an eligible cash loan by an ordinary financial consumer. It focuses on the deadline and settlement cash flows immediately after the contract, while a refinancing calculator compares a new rate and longer-term interest savings. Prepare the contract documents and lender quotes, then save a worksheet for discussion with the lender. Contract inputs are processed in your browser without a separate upload or storage service.
Where does the usual 14-day period start?
Article 46(1) of the Financial Consumer Protection Act provides the usual 14-day period for eligible loan products and allows a longer period agreed between the parties. The normal reference is when the contract documents were provided; where the Article 23(1) document-provision exception applies, use the contract date instead. If the loan was disbursed later than that reference, use the disbursement date. Not knowing the receipt date, or not having received documents, does not by itself establish an exception.
Documents were provided
The start is the later of actual document receipt and disbursement. A contract date earlier than receipt does not replace the actual provision date. Review electronic-mail, message and app records as well as paper documents.
A confirmed document exception
Only after the lender confirms the Article 23 exception, use the later of contract and disbursement. Do not infer the exception from the product name or application channel. Multiple advances or a new borrowing transaction may require separate review of the relevant contract unit.
Some lenders offer longer agreed periods for older consumers. Woori Financial Savings Bank described a 30-day arrangement for customers aged 70 or older in its December 8, 2025 notice, but this is not a universal rule for all banks or older borrowers. The calculator therefore accepts a lender-confirmed period rather than automatically extending the deadline based on age.
Adjust holidays at the endpoint
Under the ordinary first-day exclusion in Civil Act Article 157, add the entered number of days to the start date. Count calendar days, including intervening weekends and holidays, rather than 14 business days. If the endpoint is a Saturday or public holiday, Article 161 moves it to the next day; continue through consecutive holidays.
A Chuseok example
A start of 2026-09-10 plus 14 days produces an unadjusted endpoint of 2026-09-24. Chuseok on September 24–26 and Sunday September 27 move the adjusted deadline to 2026-09-28, a four-day extension. A planned return on September 28 is shown as the deadline day.
The 2026 calendar includes Lunar New Year, Chuseok, election day, substitute holidays, Labor Day and Constitution Day under the current regulation. Add only genuinely designated new public holidays, not an individual branch closure. A contract or start outside 2026, or a deadline crossing into 2027, requires verification of the applicable rules and calendar before an exact date is issued. Special periods starting at midnight, application cutoff times and banking-system availability require lender confirmation.
Use lender quotes for the same repayment date
Principal and unpaid interest
Principal is the same remaining loan balance returned in full under both options. Enter lender-confirmed interest using the contractual rate from disbursement to return. Do not add already-paid interest to interest still due; enter any separately confirmed return as a refund. Product-specific day-count conventions and rounding can differ, so this calculator does not invent a rate, a universal 365-day denominator or daily interest quote.
Fees and third-party costs
Withdrawal costs mean recoverable taxes, registration charges and comparable third-party costs already paid by the lender for the contract. Do not add internal processing expenses or a withdrawal penalty merely because a cost field exists. Use the actual prepayment fee after exemptions and reductions, with any separate discharge or settlement expenses in the other-cost field.
Amounts use whole KRW. Leave unknown costs blank and explicitly enter 0 when the lender confirms there is no charge or refund. An average market rate or an old product-document example may not represent the amount due on your contract today. Changing the planned return date can change both interest and fees, so obtain fresh quotes for both alternatives.
Cash needed first and forward net cost
Cash before refunds
Withdrawal cash = remaining principal + withdrawal interest due + third-party costs Prepayment cash = remaining principal + prepayment interest due + prepayment fee + other settlement costs
Forward net cost, excluding principal
Withdrawal net cost = withdrawal interest due + third-party costs − withdrawal refund Prepayment net cost = prepayment interest due + fee + other settlement costs − prepayment refund Difference = prepayment net cost − withdrawal net cost
A positive difference favors withdrawal and a negative difference favors prepayment, subject to confirmed eligibility and a date inside the period. Equal principal cancels from cost comparison but remains part of the funds you must return. Article 46(3) provides a lender-return structure within three business days after receipt of the required principal, interest and costs, so a subsequent refund is not treated as cash already available for settlement. Never enter a refund twice when it has already been offset against a quoted interest or cost amount.
A negative forward net cost can represent recovery of charges paid earlier. It is not profit on the whole contract. Common past expenses, time value of money, tax effects and interest savings on a replacement loan are outside this comparison.
Step-by-step workflow
Confirm ordinary-consumer status, product eligibility, full return and the agreed period with the lender.
Enter the contract, actual document-receipt and disbursement dates, plus the day you plan to return the funds.
Enter a longer period only if agreed and check for newly designated public holidays.
Obtain same-date withdrawal and prepayment quotes, separating principal, interest, fees, costs and refunds.
Review the deadline, remaining days, upfront cash and forward net cost together, including whether you can fund the return.
Save the worksheet, give notice in an accepted manner, complete the required return and confirm processing with the lender.
The example button loads illustrative dates and amounts. Clear them before entering your own contract information. The TXT worksheet retains unresolved conditions so a cost table cannot be mistaken for a completed withdrawal receipt.
Worked example: KRW 10 million
A contract on 2026-09-01, document receipt on September 2 and disbursement on September 3 produce a start of September 3 and the usual deadline of September 17. Assume the full KRW 10,000,000 principal is returned on that date and both settlement quotes below are confirmed.
Illustrative settlement of a KRW 10 million loan
Item, KRW
Withdrawal
Prepayment
Unpaid interest
20,000
20,000
Third-party costs / prepayment fee
30,000
80,000
Other costs and refunds
0
0
Cash before refunds, including principal
10,050,000
10,100,000
Forward net cost, excluding principal
50,000
100,000
Withdrawal is KRW 50,000 cheaper under these inputs and the planned date. If the prepayment fee is waived, prepayment net cost becomes KRW 20,000, making it KRW 30,000 cheaper than withdrawal. In a separate scenario with a KRW 60,000 withdrawal refund, withdrawal net cost is −KRW 10,000 while upfront withdrawal cash remains KRW 10,050,000.
Practical situations
Unexpected funds become available
If a deposit matures or a family settlement releases cash soon after borrowing, check the withdrawal window first. Then compare whether a prepayment exemption or recoverable mortgage-registration cost changes the lower-cost option.
The deadline is close
Communicating an intention without returning the required money may not satisfy the conditions for effective loan withdrawal. Check transfer limits, the return account and processing hours, and arrange cash without relying on a later refund.
For refinancing, establish the current contract exit cost here and then separately compare the new rate, term and fees. A low exit cost alone does not establish that the replacement loan is worthwhile or will be approved and disbursed on time.
When the comparison is withheld
Ordinary-consumer status, product eligibility or the agreed period is unconfirmed.
Document receipt or actual costs are missing; the calculator does not substitute the contract date or zero.
The planned return is after the deadline, even if a hypothetical withdrawal scenario is cheaper.
The product may fall within exclusions, including linked peer-to-peer lending, credit cards, small deferred payments, certain delivered leasing or installment-finance arrangements, or securities credit where collateral has been disposed of.
Business exceptions, multiple disbursements, partial withdrawal, disputed provision of documents or special midnight-start terms require individual review.
With all amounts entered, conditional cost scenarios may still be displayed when eligibility is unconfirmed or the period has passed. They support discussion and do not establish legal availability or a final lender settlement. Mis-selling damages, unlawful-contract termination and debt adjustment are separate mechanisms; do not apply this deadline to them.
Frequently asked questions
Is it always 14 days after signing?
Usually the reference is document provision, with the Article 23 exception using the contract date. Later disbursement moves the start, and a longer agreed period can apply.
Do I exclude weekends from all 14 days?
No. Intervening holidays count. Only a Saturday or public-holiday endpoint rolls forward through consecutive holidays.
Does a telephone call complete withdrawal?
Article 46(2) requires notice by the accepted written or electronic means and return of principal, interest and costs. Confirm the method, cutoff, dispatch notification and completion evidence with the lender.
Is withdrawal entirely free?
A withdrawal penalty or damages claim is prohibited, but contractual interest and actual recoverable third-party costs may still be payable. These differ from a prepayment fee.
Can I enter zero for an unknown charge?
Only a confirmed absence of a charge is zero. Leave unknown amounts blank to avoid an unsupported lowest-cost conclusion.
Can I reduce my upfront funds by the refund?
Without an explicit lender-confirmed offset, a later refund is not already available. This model does not subtract it from upfront cash.
Does repayment on the deadline automatically count as withdrawal?
Ordinary prepayment and withdrawal are different procedures. Satisfy the notice and return requirements and confirm how the lender processed the transaction.
How much will my credit score improve?
The model does not predict a credit score or guarantee record deletion. Confirm your contract record with the lender and credit-information provider.
Sources and update basis
The current texts were checked directly through the National Law Information OPEN API on 2026-09-25. The Financial Consumer Protection Act is MST 277247, effective 2026-01-02; the Enforcement Decree is MST 285715, effective 2026-04-28; and the Supervisory Regulation is serial 2100000276850, effective 2026-04-02. Civil Act MST 284415 is effective 2026-03-17, using Articles 157 and 161. Public Holiday Regulation MST 285779 is the whole-text version effective 2026-05-11, with Articles 2 and 3 checked against the calendar announcement and later holiday amendments.
The iM Bank product explanation cross-checks the practical settlement structure; its historical fee rates are not used. The Woori Financial Savings Bank notice is an example of a longer individual arrangement. Recheck legal changes, temporary holidays and lender terms quarterly and before filing.
Prepare the dates and funds, then contact the lender
Review the start date, adjusted deadline, planned return, principal, interest and third-party costs with your lender. Confirm the notice method, repayment account, transfer limits and same-day cutoff, then complete notice and return and keep the evidence. Check refunds and transaction status afterward, including whether the transaction was processed as withdrawal or ordinary prepayment.