Korea Interest Overcharge Refund Calculator

Calculate Korean usury-law overcharge refund, 20 percent annual cap, principal allocation, anti-social high-interest threshold, and delay interest.

Loan interest facts

Refundable amount

₩5,168,219

Refund with delay interest

₩5,446,453

Effective annual rate

69.1%

Violation level

anti social

Allocation

Legal max interest
₩2,153,425
Excess interest
₩3,014,794
Principal after allocation
₩6,928,525
Unjust enrichment
₩0

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What Is the Korea Interest Overcharge Refund Calculator?

This calculator estimates refunds for Korean high-interest loan overcharges. It calculates effective annual rate, legal maximum interest, excess interest, principal allocation, unjust enrichment, refundable amount, and refund plus delay interest.

The Korean model reflects the annual 20 percent maximum interest concept and the special anti-social high-interest threshold where the effective rate exceeds three times that cap, or 60 percent.

Important Note

Actual recovery depends on loan documents, payments, advance deductions, fees, lender status, limitation periods, and evidence. Criminal or administrative remedies may also be relevant for lending-business violations.

Interest Cap Logic

Rate resultCalculator treatmentLegal effect in model
20 percent or lessLegalNo over-limit refund from rate alone
Over 20 percentOver-limitExcess interest is void and allocated to principal first
Over 60 percentAnti-socialPrincipal and interest can be treated as void in the model
Advance deduction or feeIncluded in effective-rate calculationCan raise the real annual rate above the stated rate

Principal Allocation

  • For ordinary over-limit interest, excess paid interest is first allocated to remaining principal.
  • A refund usually appears only after principal is extinguished and further excess becomes unjust enrichment.
  • For anti-social high-interest cases, the model treats paid principal and interest more aggressively as refundable.
  • Return interest on the refund is calculated using the user-selected return-interest rate.

Payment Frequency and Fees

Monthly, quarterly, lump-sum, and custom payment assumptions can change the monthly principal-allocation records. Advance deductions and fees matter because a borrower may receive less cash than the nominal principal while paying interest on the larger face amount.

The Korean content also flags the 2025-07-22 lending-business amendment treatment for extremely high anti-social interest. Users should preserve contracts, transfer records, chat messages, and repayment schedules.

FAQ

Why is excess interest not always immediately refundable?

Under the model, ordinary excess interest is applied to principal first. Refund appears after principal is fully extinguished or in anti-social cases.

Does a fee count as interest?

It can affect the effective rate if it functions like borrowing cost. The calculator includes fee amount and advance deduction in effective-rate math.

Legal Use Notice

This English page translates and adapts the Korean calculator content for Korea-based estimates. The interactive calculator reuses the same Korean pure calculation function as the Korean page, so the numerical result is aligned with the Korean service. It is an estimation tool, not legal advice for a specific dispute.