Refer Report

Woori Bank has decided not to provide housing mortgage loans to homeowners who are trying to purchase additional homes in the Seoul metropolitan area. It will also completely stop providing housing deposit loans to homeowners.

Woori Bank announced on the 1st that it will implement the ‘Household Debt Efficiency Plan Centered on Real Demanders’ containing the above contents starting on the 9th. The purpose is to block speculative demand from multiple homeowners and supply funds only to real demanders such as those without homes. Only those who have one home will be given loans as an exception if they are temporarily short of funds due to a mismatch in moving dates, etc.

The jeonse loan will be handled only when all household members are non-homeowners to prevent ‘gap investment’ (sales with jeonse). However, jeonse loan will be provided to those who own a house if they extend the jeonse or sign a jeonse contract and pay the deposit 8 days in advance. The refinancing (switching) of other banks’ housing loans through branch offices will also be stopped. Woori Bank will reduce the maximum housing loan maturity from the existing 40 years to 30 years from today.

Kookmin Bank is considering limiting the number of non-face-to-face housing loan applications through the ‘KB Star Banking’ app. For example, it is known that they are discussing limiting the number of new non-face-to-face loans to 100 per day. A Kookmin Bank official said, “We are taking steps to manage the loan business to ensure smooth processing of loans for actual users.”

Reporter Kim Bo-hyung kph21c@hankyung.com

Source: Korean