Go Seung-beom "Considering Regulation on Ultra-High Jeonse... Standard Will Be Higher Than 900 Million Won"

Financial Services Commission Chairman Ko Seung-beom is delivering opening remarks at the Financial Services Commission Chairman and Insurance Industry Meeting held on the 3rd at Lotte Hotel in Jung-gu, Seoul. On this day, Chairman Ko Seung-beom meets with insurance company CEOs and experts from related organizations to discuss the development direction of the insurance industry and key issues. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Kim Jin-ho] Ko Seung-beom, Chairman of the Financial Services Commission, announced on the 7th that regulations such as restrictions on loan guarantees for ultra-high-priced jeonse are being considered.

Chairman Ko told reporters right after a meeting with young entrepreneurs held at Front1 in Mapo-gu, Seoul, "There have been criticisms that loans for ultra-high-priced jeonse are inappropriate, so SGI Seoul Guarantee will take the lead in reviewing this," he said.

However, regarding the previously reported plan to restrict loan guarantees for high-priced jeonse over 900 million won, he drew a line by saying, "Nothing has been finalized or reviewed yet." This statement is interpreted as taking into account the recent significant rise in jeonse prices, resulting in many jeonse contracts exceeding 900 million won.

Chairman Ko said, "Since there are many criticisms regarding ultra-high-priced jeonse, we will review this," and when asked by reporters whether the standard for ultra-high-priced jeonse is 900 million won, he replied, "It will be much higher."

According to financial authorities and the insurance industry, SGI Seoul Guarantee is considering suspending guarantees for high-priced jeonse after the launch of the 'Household Debt Management Task Force' formed by the Financial Services Commission earlier this month.

Unlike the Korea Housing Finance Corporation (KHFC) and the Housing and Urban Guarantee Corporation (HUG), which provide guarantees for jeonse loans but set a ceiling on the deposit amount (5 billion won in the metropolitan area), SGI Seoul Guarantee has no limit, allowing loan guarantees for high-priced jeonse.

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