South Korea's commercial banks rejected 176,725 of 896,110 unsecured personal-loan applications from borrowers with Korea Credit Bureau scores of 901 to 1,000 during the first half of this year, producing a 19.7% rejection rate. The rate was 17.6% even among applicants scoring 951 to 1,000, and has risen from 6.6% in 2021. Data submitted by KB Kookmin Bank, Shinhan Bank and NH NongHyup Bank to Rep. Seo Il-jun of the ruling People Power Party indicate that tighter household-debt controls introduced since the Lee Jae-myung administration took office are affecting high-credit borrowers. Credit score inflation has also made scores above 900 less distinctive, while banks are applying greater scrutiny to income, existing debt and past delinquencies. Borrowers with lower scores face sharply higher rejection rates and interest costs, increasing reliance on non-bank lenders that often charge 15% or more annually.