| (2) | In determining the interest rate prescribed in paragraph (1), all payments made to a credit service provider in connection with a loan, in whatsoever name it is referred to, such as a recompense, a rebate, a fee, a deductible amount, overdue interests, or a substitute payment, shall be deemed interest; provided, the foregoing shall not apply to expenses specified by Presidential Decree as those incidental to the conclusion of the relevant transaction and repayment. |
| (4) | If a credit service provider concludes a loan agreement in violation of paragraph (1), the agreement on interest in excess of the interest rate specified in paragraph (1) shall be void. <Amended on Dec. 24, 2018> |
| (5) | When a debtor pays interest in excess of the interest rate specified in paragraphs (1) and (2), the amount equivalent to such overpaid interest shall be applied to the payment of the principal, and the debtor may claim the refund of the remainder, if any. <Amended on Dec. 24, 2018> |
| (6) | If a credit service provider makes a loan after deducting an amount as prepaid interest from the principal, the amount that the debtor actually receives shall be deemed the principal for the purpose of determining the interest rate prescribed in paragraph (1). <Amended on Dec. 24, 2018> |
[This Article Added on Mar. 3, 2016]