KB Kookmin Financial institution, one in every of Korea’s main lenders, has determined to droop new family loans for house purchases for the remainder of 2025 amid authorities efforts to chill an overheated property market and curb family lending, officers stated Friday.
New purposes for mortgage loans for house purchases can be suspended beginning Saturday for on-line and cell channels, and from Monday for in-person purposes.
The financial institution may even halt refinancing of mortgage, jeonse and unsecured loans from different banks, in addition to non-face-to-face unsecured mortgage merchandise, beginning Saturday.
“We intention to take care of an applicable year-end family mortgage portfolio,” a KB official stated. “However mortgage loans for steady dwelling functions and jeonse loans scheduled for execution throughout the yr will nonetheless be accessible.”
Jeonse is a novel housing rental system in Korea during which tenants make a big lump-sum deposit that’s absolutely returned on the finish of their lease agreements.
KB Kookmin’s transfer follows an analogous resolution by Hana Financial institution, which earlier introduced it could limit new mortgage and jeonse mortgage purposes beginning Tuesday.
Such actions come as the federal government is striving to rein in rising house costs and family debt via tighter lending guidelines and stricter laws for house purchases in Seoul and surrounding areas.
Family credit score in Korea had reached a document excessive of 1,968.3 trillion received ($1.34 trillion) as of end-September by rising 14.9 trillion received from three months earlier.
It marked the sixth consecutive quarterly improve, although the expansion has slowed markedly from the second quarter amid laws.
