Shinhyup Suspends New Group Apartment Loans "Risk Management Amid Real Estate Market Downturn"

[Asia Economy Reporter Bu Aeri] Shinhan Credit Union will suspend new apartment group loans until the end of the year.

On the 19th, the Shinhan Credit Union Central Association announced, "We will temporarily suspend only interim payment loans, relocation loans, and burden loans subject to group loan screening. Other balance loans can be processed normally."

Group loans are credit facilities executed collectively with blanket approval without individual screening, targeting new apartment sales or scheduled residents of reconstruction and redevelopment projects.

The Shinhan Credit Union Central Association explained that this is a preemptive risk management measure due to the recent sharp rise in interest rates, accelerated competition for member union deposits, and the real estate market downturn.

Loans are expected to resume normally from January 1 of next year.

A Shinhan Credit Union official stated, "For sites that were in progress before the suspension date (the 21st of this month), loans will be processed normally regardless of the temporary suspension period. Since screening for new projects will also resume in early January next year, there will be no disruption to the group loan business of member unions."

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