[2023 National Audit] Financial Services Commission Chairman: "50-Year Maturity Mortgage Loans by Banks Are Unreasonable"

October 11 National Assembly Political Affairs Committee Audit

Financial Services Commission Chairman Kim Ju-hyun is delivering opening remarks at the Financial Services Commission Chairman-Financial Association Presidents meeting held on the 22nd at the Press Center in Jung-gu, Seoul. Photo by Yoon Dong-joo doso7@

Financial Services Commission Chairman Kim Ju-hyun criticized the 50-year mortgage loans sold by commercial banks in the last quarter as "unreasonable."

On the 11th, during the National Assembly's Financial Services Commission audit by the Political Affairs Committee, Chairman Kim said, "If they had even a little understanding of the government's concerns about household debt and basic common sense as citizens of the Republic of Korea, they would not have launched such products."

This was in response to a question from Kim Han-gyu, a member of the Democratic Party of Korea, who pointed out, "President Yoon Seok-yeol announced plans to launch 50-year mortgage loans before his inauguration, but now that household debt is increasing, isn't he shifting the responsibility to the banks?"

Chairman Kim stated, "The 50-year special Bogeumjari Loan offered by the Korea Housing Finance Corporation was available only to those aged 34 or younger, non-homeowners, and had fixed interest rates," adding, "However, banks included multi-homeowners as eligible and even handled borrowers aged 60." He continued, "I think this is against common sense and can only be seen as a move by banks to secure profits."

Regarding Kim's criticism that "the special Bogeumjari Loan contradicts the government's policy focus on managing household debt," Chairman Kim said, "I cannot fully agree."

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