Saemaeul Geumgo, "Private Equity Fund Loan Exceeds LTV on Samsung-dong Apartment"... Begins Recovery of 10 Billion Won

[Asia Economy Reporter Kim Min-young] It has recently been revealed that seven local Saemaeul Geumgo branches partially violated government real estate regulations by providing loans during the process of a real estate private equity fund purchasing an entire apartment building in Gangnam, Seoul. The Saemaeul Geumgo Central Association has begun recovering the loans.

According to the Saemaeul Geumgo Central Association on the 22nd, a private equity fund managed by Aegis Asset Management borrowed a total of 27 billion KRW from seven Saemaeul Geumgo branches when purchasing an apartment building, ‘Samsung World Tower’ in Samseong-dong, Gangnam-gu, Seoul, for about 40 billion KRW in mid-last month.

Upon recent review of this loan case by the Central Association, it was found that there was an issue with the calculation of the Loan-to-Value ratio (LTV). Approximately 10 billion KRW out of the 27 billion KRW exceeded the government’s real estate loan regulations.

According to the December 16 real estate measures implemented last year, in speculative areas or speculative overheating districts, the LTV is applied as 40% for market prices up to 900 million KRW, 20% for prices exceeding 900 million KRW but less than 1.5 billion KRW, and 0% for prices exceeding 1.5 billion KRW.

A representative of the Central Association stated, “We plan to order the recovery of the excess amount as soon as possible,” adding, “We will thoroughly review how loans that violated the policy ratios were made and take appropriate measures.”

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