Outstanding Loan Balance for Multiple Homeowners Hits 103 Trillion Won... Half Concentrated in Seoul and Gyeonggi

20 Trillion Won in Seoul Alone

Gangdong, Gangnam, Seocho, and Seongdong Districts Lead in Outstanding Balances

"Most Loans Are Amortized... Policy Effectiveness Must Be Considered"

The outstanding loan balance held by multiple homeowners has surpassed 100 trillion won, with a concentration of loans observed in areas such as Gangdong and Gangnam in Seoul. Recently, loans to multiple homeowners have emerged as a key focus of government oversight.

On the 26th, apartment prices in Seoul's Gangnam 3 districts (Seocho, Gangnam, Songpa) and Yongsan District have turned to decline. From the Namsan Observatory in Seoul, apartment complexes are densely lined up throughout the city. Photo by Yonhap News

According to data titled "Status of Loans to Multiple Homeowners at Domestic Banks," submitted by Assemblyman Kang Min-guk's office of the National Assembly Political Affairs Committee and obtained from the Financial Supervisory Service on March 5, the outstanding loan balance for multiple homeowners (including jeonse loans, relocation expenses, and interim payment loans) stood at 102.9 trillion won as of the end of January.

Multiple homeowners are defined as individual borrowers who, at the time of a new loan transaction, owned two or more homes per household, or those who, while owning one home, took out a mortgage loan for the purpose of purchasing another property.

By region, loans were heavily concentrated in the Seoul metropolitan area, including Seoul and Gyeonggi Province. The combined loan balance for Seoul (20 trillion won) and Gyeonggi Province (31.9 trillion won) amounted to 51.9 trillion won, accounting for more than half (50.4%) of the total.

The outstanding loan balance in Seoul increased by 21% in just over a year, from 16.5 trillion won at the end of 2024 to 20 trillion won.

Within Seoul, Gangdong District had the highest balance at 1.9 trillion won, followed by Gangnam District (1.7 trillion won), Seocho and Seongdong Districts (1.3 trillion won each), Yangcheon District (1.2 trillion won), and Songpa and Dongdaemun Districts (1.1 trillion won each).

By type of collateral, apartment-backed loans made up the majority.

The outstanding balance of apartment-backed loans stood at 91.9 trillion won, accounting for 89.3% of the total, while non-apartment collateral loans amounted to about 11 trillion won (10.7%).

In terms of loan structure, most were based on amortized repayment of principal and interest. Amortized loans totaled 95.7 trillion won, representing 93% of the total, while loans with bullet (lump-sum) repayment at maturity stood at 7.2 trillion won (7.0%).

Assemblyman Kang stated, "It is important to consider that a significant portion of loans to multiple homeowners are structured with amortized principal and interest payments," adding, "Since this could potentially make the jeonse and monthly rental market more challenging for those without homes, it is necessary to weigh the pace of financial regulation and the effectiveness of related policies."

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