Financial Authorities Respond to Moon's 'War on Real Estate Speculation' Statement: "Strict Management of Loan Regulation Blind Spots"

On the 7th, citizens are watching President Moon Jae-in's New Year's address in the Seoul Station waiting room. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Kim Hyo-jin] Financial authorities have announced their intention to prevent blind spots in real estate loan regulations. This appears to be in response to President Moon Jae-in's New Year's address declaring a "war against real estate speculation."

On the 7th, the Financial Services Commission stated in a "press reference material" that "financial authorities are operating loan regulations without any regulatory blind spots" and "are strictly managing to prevent regulatory circumvention."

The Financial Services Commission also confirmed that "for business loans in industries other than housing rental and sales, loans cannot be secured using houses located in speculative areas as collateral for the purpose of purchasing housing."

Furthermore, the Financial Services Commission reaffirmed that through the December 16 real estate measures, the scope of these regulations has been expanded to include speculative overheated districts, and that violating these rules may result in immediate fund recovery.

Additionally, the Financial Services Commission stated, "Foreigners who receive mortgage loans through domestic financial institutions are subject to the same loan regulations such as LTV as domestic residents," and added, "If regulatory gaps are found, related regulations will be supplemented, and while inspecting financial institutions' compliance, we will manage to prevent cases of loan regulation circumvention."

In his New Year's address released that morning, President Moon said, "The government's determination to stabilize the real estate market, protect genuine buyers, and suppress speculation is firm," and "We will never lose in the war against real estate speculation."

This content was produced with the assistance of AI translation services.