Regulatory Alerts2025-06-27 | 84828Authorities Introduce Measures to Strengthen Household Debt Management Centered on Seoul Metropolitan Area
The Financial Services Commission and related government bodies have introduced strict measures to curb rising household debt driven by mortgage loans in the Seoul metropolitan area. Key regulations include reducing annual household loan targets, capping mortgage limits at KRW600 million, restricting loan-to-value ratios, and prohibiting speculative lending practices such as jeonse loans with ownership transfer conditions. These immediate actions aim to prevent excessive demand concentration while protecting non-speculative borrowers through interim safeguards and enhanced compliance monitoring.
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