[The Cry of 2030] "They Block Loans Because Nothing Works Anyway"

Housing Prices Soar and Jeonse Shortage... Loans Also Blocked
"Shifting Responsibility to Genuine Buyers" Sparks Anger

On the 17th, ahead of the real estate brokerage commission reform, property listings are posted at a real estate agency in Songpa-gu, Seoul. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Yoo Byung-don] Kim Jeong-hoon (32, pseudonym), a groom-to-be preparing for his wedding this November, feels at a loss. Banks have significantly restricted new housing mortgage loans and jeonse (long-term deposit lease) loans, disrupting his plan to find a jeonse house. If he hastily signs a contract but the loan approval is denied, he would have to pay not only the deposit but also penalties, making it difficult to look for a house prematurely.

Kim said, "I was already anxious because there were hardly any suitable jeonse listings, and now my main bank loan has been blocked, which is frustrating," adding, "Isn't it becoming even harder for ordinary people to find a home?"

Complaints are rising among young people who intended to buy or rent homes with loans. Setting aside the skyrocketing housing prices caused by the government's failed real estate policies, there are criticisms that the burden is being shifted onto actual demanders.

Those who need cash more urgently due to loan denials or rising interest rates are becoming desperate. Office worker Choi Hwan-jong (36) said, "With housing prices soaring, I don't understand what kind of policy it is to block loans when nothing else works," adding, "I heard that housing prices are rising rapidly not only in the metropolitan area but also in the provinces, so I am very worried."

News of credit loan limit restrictions by banks is also affecting young workers in their mid-20s. The financial authorities have recommended lowering the credit loan limit under 100 million won from about twice the annual salary to about once the annual salary. In fact, last week, the number of newly opened overdraft accounts at the five major commercial banks surged by 33.3% compared to the previous week.

Son Hye-jin (25, female) said, "I have not taken any loans so far, but I am considering whether I should at least open an overdraft account," revealing, "The lease on the one-room apartment I am currently living in is about to expire, so I think I need to find a solution in advance."

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