South Korea's major brokerages are rapidly lowering rates on post-sale collateral loans, or advances against pending stock sale proceeds, after criticism from political circles and regulators over double-digit charges on products widely seen as carrying minimal credit risk. Based on company disclosures, the average rate is set to fall to 7.64% annually from 8.25%, while Daishin Securities will offer the lowest rate among major firms at 5% from July 21 after cutting 3 percentage points from 8%. Daishin is also reducing the overdue interest rate on unsettled trades to 7.2% from 12% from the same date, broadening the relief on short-term funding costs for retail investors. Kiwoom Securities, Shinhan Investment & Securities, Korea Investment & Securities, NH Investment & Securities and Mirae Asset Securities have also announced cuts, while Samsung Securities, still at about 9%, says it is reviewing a reduction. The debate has intensified as South Korea's T+2 settlement cycle leaves investors needing short-term funding before sale proceeds arrive. President Lee Jae-myung publicly questioned why stock sale payments take until "the day after tomorrow," and the Financial Services Commission has said it will push for reasonable rate reductions. In the National Assembly, Representative Cho In-chul of the Democratic Party of Korea has proposed requiring brokerages to disclose how these rates are calculated. The issue has drawn added attention because interest income from the loans is rising quickly: the top 10 brokerages earned 53.59 billion won, or about $37.5 million, in the first four months of this year, already more than 80% of last year's 65.89 billion won, or about $46.1 million. Even after the planned cuts, post-sale collateral loan rates remain above average margin loan rates of around 5% annually and commercial banks' unsecured personal loan rates of 4% to 6%, leaving further cuts and disclosure reforms in focus.