[Seoul=Newsis] Reporter Hong Hyo-sik = The government announced plans to expand housing supply through the real estate-related ministers’ meeting on the 7th. To resolve the shortage of housing supply in the metropolitan area, the government aims to supply a total of 1.35 million housing units in the metropolitan area by 2030 and plans to start construction of 270,000 new housing units annually. For this, the Korea Land and Housing Corporation (LH) will halt the sale of public development sites in the metropolitan area and directly proceed with development. The photo shows the view of Seoul apartments from Namsan on the 7th when the housing supply expansion plan was announced. 2025.09.07. [email protected]
[Seoul=Newsis] Reporter Choi Hong = The Financial Supervisory Service is monitoring the bank and second-tier financial institution counters from today concerning the government’s additional loan regulations, which include strengthening the Loan-to-Value ratio (LTV) for mortgage loans and reducing the limit on jeonse loans.
On the 8th, a representative from the Financial Supervisory Service stated, “We plan to check the bank counters daily,” to ensure that the government’s loan regulations are properly implemented.
The previous day, the government announced measures to prevent speculative demand influx and excessive household debt growth resulting from expanded housing supply, including ▲strengthening LTV in regulated areas (50%→40%) ▲prohibition of loans for home sales and rental business owners in the metropolitan and regulated areas ▲unifying the jeonse loan limit to 200 million won for single homeowners in the metropolitan and regulated areas.
In this regard, the Financial Supervisory Service plans to monitor whether loans are being issued to home sales or rental business owners, if LTV in regulated areas is being exceeded, or if the jeonse loan limit for single homeowners is surpassed starting today.
Furthermore, the agency will check if complete computerization has been achieved across all branches concerning the new regulations. It is noted that the likelihood of bypass loans similar to the policy from June 27 is not high yet.
Hereafter, the financial authorities will implement additional regulations, such as macroprudential regulations and expanding the target for the Debt Service Ratio (DSR), immediately if necessary by observing market conditions.
The previous day, Shin Jin-chang, Director General of the Financial Policy Bureau at the Financial Services Commission, emphasized during an emergency household debt inspection meeting, “For the effective implementation of the measures, management and operations following the announcement of the measures are more important,” urging industry-specific associations and financial institutions to diligently educate staff, inspect computer systems, and guide customers to prevent confusion and inconvenience among consumers at the front line.
Additionally, he stated, “Managing household debt is crucial not only for stabilizing the real estate market but also from the perspective of macroprudential stability of our economy,” and added, “We will strictly monitor the market conditions with related ministries and promptly implement various available measures prepared according to different household debt scenarios.”