Canceling a credit card revolving payment agreement may cause your entire outstanding carried-over balance to become due on your next payment date. KB Kookmin Card requires customers who entered into revolving payment agreements on or after February 1, 2013, to pay the full outstanding revolving balance on the first payment date following cancellation. However, different billing rules apply to customers whose agreements were established on or before January 31, 2013. Other Korean credit card issuers may have different terms.the three most important things to check before canceling a revolving payment agreement are the original agreement date, the outstanding carried-over balance, and the actual amount that will be billed after cancellation.
What Happens to Your Outstanding Balance When You Cancel Revolving Payments?
Canceling a revolving payment agreement ends the arrangement that allows you to carry part of your credit card bill into the following month. It does not erase amounts you have already carried over. Those outstanding balances remain payable under the credit card issuer's contractual terms.
In South Korea, the official Korean name for a revolving payment agreement is *ilbu gyeolje geumaek iwol yakjeong* (일부결제금액이월약정), meaning an agreement to carry over part of the payment amount.
For example, suppose your credit card bill is KRW 1 million and your agreed payment ratio is 30%. Under this arrangement, you pay KRW 300,000 of the principal and carry the remaining KRW 700,000 into the following month. Separate revolving payment fees apply to the carried-over amount.
If you cancel the agreement at this point, you might assume you can continue paying only 30% of the outstanding amount. However, after cancellation, the agreed payment ratio may no longer apply, or a separate billing arrangement may remain in effect for balances accumulated under the previous agreement.
It is particularly important to distinguish between being billed for the entire revolving payment balance and being billed for all outstanding credit card charges.
Installment payments, annual membership fees, and other charges not covered by the revolving payment agreement may be billed separately.
KB Kookmin Card: Why February 1, 2013, Determines the Billing Rules
KB Kookmin Card distinguishes how outstanding revolving payment balances are billed after cancellation based on the date the customer originally entered into the agreement.
| Original agreement date | Treatment of existing revolving payment balance after cancellation |
|---|---|
| On or before January 31, 2013 | Billed according to the existing agreed payment ratio |
| On or after February 1, 2013 | Full amount billed on the first payment date after cancellation |
Agreements Made on or Before January 31, 2013
For customers who entered into an agreement on or before January 31, 2013, the existing agreed payment ratio continues to apply to revolving payment amounts already used, even after the agreement is canceled.
However, there is an important exception to understand.
The minimum payment ratio no longer applies after cancellation. To avoid overdue payments, customers must therefore pay the amount shown as the 'Total Credit Card Payment Due' on their billing statement.
Having an older agreement does not mean you can safely pay less than the amount stated on your bill.
KB Kookmin Card also advises customers with these older agreements who want their entire existing revolving balance billed on the next payment date to change their agreed payment ratio to 100% before canceling the agreement.
Agreements Made on or After February 1, 2013
Different rules apply to customers whose agreements began on or after February 1, 2013. The full outstanding revolving payment balance is billed on the first scheduled credit card payment date after cancellation.
As a result, even customers using the same KB Kookmin Card revolving payment service may need to prepare different amounts immediately after cancellation, depending on when their agreements began.
Importantly, February 1, 2013, is not a universal cancellation cutoff date applicable to all credit card companies in South Korea. It is the date KB Kookmin Card uses to distinguish between these contractual arrangements.
How to Check Your Revolving Balance and Agreement Date
KB Kookmin Card customers can review their revolving payment registration details and billing statements through the company's website or KB Pay service.
On the KB Kookmin Card website, navigate to:
Finance → Partial Payment Carryover Agreement (Revolving) → Registration Details Inquiry
Before canceling, check the following four items.
1. Original agreement date: Determine whether your agreement began before or after the February 1, 2013, cutoff.
2. Current carried-over balance: Check the amount of principal transferred from a previous payment cycle into the following month.
3. Agreed payment ratio and applicable fee rate: Confirm the percentage you currently pay and the interest or fee rate applied to the carried-over amount.
4. Expected bill on the first payment date after cancellation: Check the total amount, including the revolving principal, applicable fees, and other credit card charges.
If you cannot find the original agreement date on the screen, contact customer service and ask for the exact date the agreement first began.
This is especially important if your agreement has been renewed or your payment ratio has changed. The date currently displayed in your account may not necessarily be the original agreement date.
You can ask customer service:
'What is the original start date of my revolving payment agreement? If I cancel it now, will my entire existing carried-over balance be billed on the next payment date? Please also confirm the actual expected payment amount, including revolving fees and regular credit card charges.'
Checking these details reduces the risk of preparing money in your payment account based only on the revolving balance while overlooking other amounts due.
Example: How Much Could Be Due After Canceling Revolving Payments?
For a KB Kookmin Card customer whose revolving payment agreement began on or after February 1, 2013, an outstanding revolving principal balance of KRW 1.5 million would become fully payable on the first payment date after cancellation.
However, the actual credit card payment may not equal the KRW 1.5 million revolving principal alone.
Consider the following hypothetical example to understand how the total bill is calculated.
| Item | Amount |
|---|---|
| Existing revolving principal carried over | KRW 1,500,000 |
| New single-payment credit card charges billed this cycle | KRW 400,000 |
| Installment payments due this cycle | KRW 100,000 |
| Total principal and installment payments due | KRW 2,000,000 |
Author's calculation: KRW 1,500,000 + KRW 400,000 + KRW 100,000 = KRW 2,000,000
In this example, the amount due before fees is already KRW 2 million.
The actual payment amount will depend on factors such as credit card transaction history, when charges appear on the statement, revolving payment fees, canceled transactions, and any early repayments.
In particular, you should not simply check the carried-over balance before cancellation and deposit exactly that amount into your payment account.
It is more accurate to prepare funds based on the expected post-cancellation billing amount confirmed by the credit card issuer.
Can You Repay Your Revolving Balance Early Without a Penalty?
KB Kookmin Card allows customers to repay outstanding revolving balances early without an early repayment penalty. However, early repayment does not automatically eliminate revolving payment fees that have already accrued.
According to KB Kookmin Card's explanation, revolving payment fees are calculated based on the outstanding carried-over balance, the applicable fee rate, and the number of days the balance has been outstanding.
For example, suppose the carried-over principal is KRW 1.5 million, the annual fee rate is 17%, and the balance has been outstanding for 30 days.
Author's calculation:
KRW 1,500,000 × 17% × 30 days ÷ 365 days = approximately KRW 20,959
This is an illustrative calculation showing how revolving payment fees are determined. It is not an actual member's applicable rate or a confirmed billing amount.
Reducing your outstanding principal through early repayment can lower future revolving payment fees. However, you should confirm the exact repayment date and the final fee settlement with the credit card issuer.
KB Kookmin Card states that fees apply when a balance is carried over and that customers may make early repayments at any time.
If you plan to cancel your agreement, it is advisable to compare the amount eligible for early repayment with the expected amount due after cancellation.
Changing Your Payment Ratio to 100% Is Not the Same as Canceling Revolving Payments
Changing your agreed payment ratio to 100% and canceling your revolving payment agreement are two different procedures.
Setting the agreed payment ratio to 100% means arranging to pay the entire amount covered by the revolving payment agreement. Cancellation, by contrast, terminates the revolving payment agreement itself.
This distinction is especially important for KB Kookmin Card customers whose agreements began on or before January 31, 2013.
KB Kookmin Card provides separate guidance stating that these customers must change their payment ratio to 100% before cancellation if they want the entire existing carried-over balance billed on the next payment date.
By contrast, customers whose agreements began on or after February 1, 2013, are billed for the full outstanding revolving balance on the first payment date following cancellation.
It would therefore be inaccurate to advise every customer to change their payment ratio to 100% before canceling.
The appropriate procedure depends on the original agreement date and what the customer intends to accomplish through repayment.
What Happens If You Cannot Pay the Amount Due After Cancellation?
If you cannot pay the amount billed after canceling revolving payments by the scheduled payment date, your account may become overdue.
While a revolving payment agreement is active, customers can carry the remaining balance into the following month by paying at least the required minimum amount. However, after cancellation, customers should not assume that the same minimum payment ratio continues to apply.
KB Kookmin Card states that its overdue interest rate is calculated by adding an overdue surcharge of 3 percentage points to the normal interest rate, subject to South Korea's statutory maximum annual rate of 20%.
The actual applicable rate varies according to the individual customer's agreement and overdue payment circumstances.
If you expect difficulty preparing the necessary funds by the payment date, check your current carried-over balance, the amount eligible for early repayment, and the billing conditions for your next payment date before proceeding with cancellation.
If you have already requested cancellation, your first priority should be to confirm with the credit card issuer whether the cancellation has been completed and what the final billed amount will be.
If your payment date falls on a public holiday or a day when financial institutions are closed, you should also confirm the actual date funds will be withdrawn. Related situations involving changes to credit card payment dates are also worth reviewing.
Final Checklist: Confirm the Next Payment Amount Before Canceling
If you have decided to cancel revolving payments, the most important question is not simply whether cancellation is possible. It is how much you will actually be required to pay on the first payment date after cancellation.
For KB Kookmin Card, the treatment of existing carried-over balances depends on whether the original agreement was established before or after February 1, 2013. If you use another credit card issuer in South Korea, you should separately review that company's cancellation terms.
Rather than canceling immediately after checking only the outstanding principal, ask your credit card issuer to confirm your original agreement date and the expected billing amount after cancellation. This will help you prepare the funds needed for your next payment date more accurately.
*Note: This article is provided for reference purposes to help readers understand financial market conditions. It is not an investment recommendation concerning any particular security or asset. Final investment decisions and responsibility rest with the individual.*