Shinhan and Hana Banks Temporarily Suspend Non-Face-to-Face Mortgage and Jeonse Loans: "Updating Systems for New Regulations"

Non-face-to-face Loan Applications Still Accepted
at KB Kookmin and NH Nonghyup

Yonhap News Agency

Some commercial banks have temporarily suspended non-face-to-face loans starting September 8, citing the need to update their systems to reflect the additional household loan regulations introduced on September 7.

According to the banking sector on September 8, Shinhan Bank has stopped offering non-face-to-face mortgage loans and jeonse (lease deposit) loans. Hana Bank's non-face-to-face mortgage loan channel is also currently unavailable. However, Hana Bank continues to accept applications for jeonse loans through both in-person and non-face-to-face channels.

A Shinhan Bank representative stated, "We have temporarily suspended non-face-to-face applications to update our systems in line with the policy announced the previous day. The system work is expected to take about a week to ten days."

Currently, KB Kookmin Bank and NH Nonghyup Bank are still accepting applications for mortgage loans and similar products through their non-face-to-face online channels.

A KB Kookmin Bank representative said, "Non-face-to-face applications are still available, and we are preparing to update our systems for contracts signed after September 8. Since there is still ample time until the final payment for contracts signed after September 8, we do not expect the system update to take long."

On September 7, the government announced additional household loan management measures, including lowering the loan-to-value (LTV) ratio limit for people without homes and single-homeowners under conditional sale in regulated areas (such as the three Gangnam districts and Yongsan District) from the current maximum of 50% to 40%.

This content was produced with the assistance of AI translation services.