[2021 National Audit] Yoo Ui-dong "Concerns Over Housing Move-in Crisis for 55,600 Households Due to Loan Regulations"

[Asia Economy Reporter Kiho Sung] Concerns have been raised about a potential 'move-in crisis' for approximately 56,600 households scheduled to move in this year due to the financial authorities' strengthened regulations on household loans.

According to data received on the 6th from four commercial banks (KB Kookmin, Shinhan, Woori, Hana) and the Korea Land and Housing Corporation (LH) by Yoo Ui-dong, a member of the National Assembly's Political Affairs Committee from the People Power Party, there are 53,023 households (with loan amounts totaling 5.727 trillion KRW) in projects where interim payment loans from commercial banks will mature between October and December this year, and 3,569 households in LH's public sale housing move-in volume.

Recently, financial authorities have been tightening management to maintain the annual household loan growth target of 5-6%. Accordingly, NH Nonghyup Bank decided to completely suspend new secured loan issuance from August to November. Hana Bank has also taken measures such as suspending new refinancing loans for some unsecured loans and mortgage loan products starting yesterday.

The issue is that interim payment loans are typically converted into new mortgage loans, including the remaining balance, at the time of move-in. Representative Yoo estimated, "Considering the scale of the interim payment balance, about 3 trillion KRW in new loans will be needed for the remaining payments."

In particular, public housing sales supply small to medium-sized apartments to newlyweds, first-time homebuyers, elderly parents with multiple children, and others. Many among them belong to economically vulnerable groups, raising concerns that if loans are blocked, they will face greater difficulties moving in.

Representative Yoo stated, "While I agree with the general principle that household debt must be managed," he pointed out, "a protection plan for actual demanders should be prepared, and effective household measures that the public can accept must be established again."

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