Dokyu-sang "Financial Services Commission Launches Real Estate Speculation Response Team...Strict Sanctions for Violations"

"From Today, Curbing Real Estate Speculation Is One of the Most Important Goals for Financial Institutions"
"Voluntary Reporting of Illegal Loans by Financial Institutions Can Reduce Fines by Up to 50%"

[Asia Economy Reporter Park Sun-mi]"Financial resources must no longer be used for real estate speculation. From today, curbing real estate speculation is one of the most important goals of the financial sector."

On the 30th, Do Gyu-sang, Vice Chairman of the Financial Services Commission, stated this at the launch meeting of the Special Financial Response Team for Real Estate Speculation (hereafter ‘Financial Response Team’), pledging to mobilize all available resources in the financial sector to eradicate real estate speculation. In his opening remarks, Vice Chairman Do said, "There will be no tolerance for real estate speculation as we activate the Financial Response Team from today," adding, "The Financial Response Team will deploy all available personnel and resources in the financial sector with the highest level of vigilance to respond to real estate speculation."

In cases where loans already issued are suspected of speculation, special on-site inspections will be conducted without delay, and any illegalities found will be immediately reported to investigative agencies. Furthermore, a system will be established to systematically conduct focused inspections on regions and financial companies where suspicious transactions surge, in cooperation with the soon-to-be-established Real Estate Transaction Analysis Institute. Vice Chairman Do added, "Even before the establishment of the Real Estate Transaction Analysis Institute, suspicious transactions occurring in areas of concern such as new towns will be intensively analyzed through the Financial Intelligence Unit (FIU), and related information will be promptly shared with investigative authorities."

He also expressed the intention to impose strict sanctions without exception if any violations are detected during the loan process related to land. Vice Chairman Do stated, "Loans to speculators subject to land disposal obligations due to violations such as the Farmland Act will be promptly recalled," and added, "To prevent loans that do not meet public expectations, regulations on non-residential collateral loans such as farmland will also be reviewed."

The Financial Services Commission is currently conducting a detailed review of the entire loan process, including loan-to-value ratios, and plans to include necessary improvements in the 'Household Debt Management Plan.' Vice Chairman Do said, "We will also expand and reorganize the illegal loan reporting center, led by the Financial Supervisory Service and the Korea Federation of Banks," urging, "If you suspect illegal or unfair loans related to real estate speculation, please contact 1332. We will support self-cleaning efforts in the financial sector, such as reducing fines by up to 50% if financial institutions voluntarily report illegal loans."

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