Tough New Measures: Homeowners in the Capital Area Face Lending Restrictions
Starting September 9, Woori Bank will halt mortgage and jeonse (rental deposit) loans for homeowners looking to buy additional properties in the Seoul metropolitan area. Starting September 9, Woori Bank will halt mortgage and jeonse (rental deposit) loans for homeowners looking to buy additional properties in the Seoul metropolitan area. This move represents one of the most stringent regulatory measures seen to date. The bank is also reducing the maximum mortgage term to 30 years. With similar actions anticipated from other major banks, including KB Kookmin, Shinhan, Hana, and NH Nonghyup, as well as online banks, the lending landscape is tightening significantly. Starting September 9, Woori Bank will implement a new policy that denies additional property loans to current homeowners seeking to buy in the Seoul metropolitan area. Homeowners will also be ineligible for jeonse loans. This measure is considered the most severe regulatory action by banks so far. Additionally, the maximum te...