Financial Services Commission Considers Easing LTV and DSR Regulations for Jeonse Fraud Victims

by Sim NaYoung

Published 20 Apr.2023 13:56(KST)

Mitchuhol-gu Jeonse Fraud 2,479 Households Subject to Regulation Lift

Park Dae-chul, Chairman of the Policy Committee of the People Power Party, is speaking at the party-government consultation meeting on the eradication of jeonse fraud and victim support held at the National Assembly on the 20th. Photo by Hyunmin Kim kimhyun81@

Financial authorities are actively considering applying exceptions to household loan regulations such as Loan-to-Value ratio (LTV) and Debt Service Ratio (DSR) for victims of Jeonse fraud.

The 2,479 households affected by Jeonse fraud in Michuhol-gu, identified by the government, are expected to be prioritized for regulatory relief. Since the Ministry of Land, Infrastructure and Transport has already defined who the Jeonse fraud victims are, the easing of loan regulations will likely apply only to those individuals.

Previously, financial authorities implemented a six-month auction suspension measure. All financial sectors, including commercial banks, savings banks, credit unions, Saemaeul Geumgo, and loan companies, agreed to voluntarily suspend auctions or sales of residences occupied by Jeonse fraud victims.

Financial authorities also plan to prepare additional support measures such as debt restructuring for victims and low-interest loans through policy financial products.