Financial Services Commission Holds Review Meeting on Real Demand Loans with 5 Major Banks... "Exclusion from Jeonse Loan Total Volume Regulation"

[Asia Economy Reporter Jin-ho Kim] On the 14th, the Financial Services Commission held a meeting with major commercial banks to review real demand loans and announced that "jeonse loans in the fourth quarter of this year will be excluded from the total volume regulation." The meeting was attended by loan officers (vice president level) from the five major commercial banks: KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup.

At the meeting, in a situation where efforts to ensure a soft landing of household debt are urgent, the recent household debt management status of each bank was reviewed, and difficulties related to jeonse loans and group loans for real demand borrowers due to strengthened household debt management were discussed.

Through this meeting, the Financial Services Commission decided to exclude jeonse loans handled in the fourth quarter from the total volume management limit to ensure that jeonse loans for low-income real demand borrowers are not interrupted. However, to prevent excessive handling of unnecessary jeonse loans, a thorough review will be conducted during the loan screening process.

Additionally, it was agreed to manage the situation so that there are no cases where tenants cannot move in due to failure to pay the balance caused by the suspension of balance loans under the total volume regulation at construction sites scheduled to be occupied in the fourth quarter.

To this end, the Financial Services Commission, Financial Supervisory Service, Korea Federation of Banks, and banks will jointly form a task force (TF) to share information related to balance loan handling for about 110 construction sites.

Furthermore, to ensure that difficulties faced by real demand borrowers are addressed smoothly starting next week, regular review meetings will be held to resolve any issues that arise.

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