President Lee Orders Review of Strong Regulations on Multi-Homeowners' Loan Extensions and Refinancing

President Lee Jaemyung is drinking water at a senior secretaries' meeting held at the Blue House on the 19th. Yonhap News Agency

President Lee Jaemyung on the 20th ordered a review of applying the same regulations to loan extensions and refinancing loans for multiple-home owners as those applied to new loans.

President Lee stated on his social networking service (SNS) account that "after receiving a report on the loan regulations for newly acquired multiple homes, I instructed the Cabinet and the Presidential Secretariat to review the current status of loan extensions and refinancing for existing multiple-home owners and to come up with robust regulatory measures."

Together with his post, President Lee shared a news article reporting that the financial authorities are considering applying the Rent to Interest (RTI) regulation when extending loan maturities for rental business operators. RTI is currently assessed only at the time of an initial loan for rental business operators, but it is reportedly being discussed that, going forward, it will be examined every time a loan is extended.

In this regard, President Lee pointed out, "Why are we only reviewing the RTI regulation?" and added, "Loan extensions or refinancing loans after the expiration of the loan period are, in essence, no different from new loans." His point is that, in addition to RTI, other regulations should also be applied in a manner similar to new loans.

President Lee explained, "Would it not be fair for loan extensions or refinancing for existing multiple-home owners to be subject to the same loan regulations as those imposed on the purchase of new multiple homes?" He added, "If completely resolving the loans at once would be too much of a shock, we could instead implement the measures gradually over a minimum period, for example by requiring 50% resolution within one year and 100% within two years."

He went on to stress, "In order to build 'a nation where the people are the owners and a Republic of Korea where we are happy together,' we must dismantle the real estate unearned-income republic without fail."

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