Saemaeul Geumgo, On-site Inspection of Business Owner Mortgage Loans

[Asia Economy Reporter Kim Min-young] Saemaeul Geumgo announced on the 9th that it will conduct on-site inspections of business loans secured by houses in speculative areas and speculative overheating districts.

This measure comes as the loan-to-value ratio (LTV) for mortgage loans was recently limited to 40%, and in some areas, there have been cases where loans were taken out under the name of business loans to evade household loan regulations but were actually used for purchasing houses. Saemaeul Geumgo aims to prevent and inspect such cases at its level.

The on-site inspections are planned to be actively carried out starting next week, and along with checking for cases of loan regulation evasion, guidance on the soundness of mortgage loans will also be conducted.

An official from the Saemaeul Geumgo Central Association stated, “Saemaeul Geumgo faithfully follows government real estate loan regulations such as the LTV guidelines under the supervision of the Ministry of the Interior and Safety, and if any violations of the guidelines are found during this on-site inspection, appropriate measures including loan recovery will be taken.”

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