NH Nonghyup Bank Suspends Conditional Jeonse Loan Services in Seoul Area
Implementation Begins on the 21st
NH Nonghyup Bank will suspend conditional jeonse loan services exclusively in the Seoul area.
This move runs counter to the trend among banks easing household loan restrictions earlier this year and is seen as a preemptive measure considering the recent rise in housing prices and increased lending centered around Seoul and the metropolitan area.
According to the financial sector on the 17th, NH Nonghyup Bank decided to stop handling conditional jeonse loans only in the Seoul area starting from the 21st.
Loans that are granted simultaneously with conditions such as the transfer of ownership by the lessor, reduction or cancellation of senior mortgage rights, or cancellation of trust registration will no longer be processed.
This is a measure to curb speculative demand such as gap investment (purchasing homes with jeonse deposits).
A bank official stated, "This decision was made as part of household loan management."
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Previously, NH Nonghyup Bank had suspended conditional jeonse loan services in September last year when household loans in the banking sector surged explosively, but resumed handling them in January this year.
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