A KB Kookmin Bank branch in Seoul. Photo by Hyojoon Jeon/ UPI
July 8 (Asia Today) — KB Kookmin Bank will cut its ceiling on home-purchase mortgage loans by half as part of an aggressive move to tighten management of household lending.
The bank said the new limits will take effect Friday and remain in place until further notice. KB Kookmin said the measure is a self-imposed restriction intended to preemptively adjust its household loan portfolio and support stable loan management.
Under the change, the maximum home-purchase mortgage loan in the Seoul metropolitan area and government-designated regulated areas will be reduced to 300 million won ($199,000) from 600 million won ($398,000).
For homes valued at more than 2.5 billion won ($1.66 million), the maximum loan will be limited to 200 million won ($133,000).
The bank will also apply a 300 million won cap to mortgages outside the Seoul metropolitan area and outside regulated areas. Previously, there was no separate maximum cap for those regions, meaning the latest measure extends loan-limit management to non-metropolitan and non-regulated housing markets.
Some loans will be excluded from the 300 million won cap. The restriction will not apply to certain group loans, including interim payment loans, relocation loans and balance-payment loans. It also will not apply to government fund loans, Bogeumjari loans or loans for home purchases and auction purchases by victims of rental fraud.
Market analysts said KB Kookmin’s decision to halve its mortgage cap reflects pressure from a recent surge in household loan balances. The bank exceeded its household loan growth target last year and was assigned a lower growth target by financial authorities this year compared with other banks.
The market expects other banks may also introduce measures to curb loan demand. Shinhan Bank said it would suspend new household loans through loan brokers from Wednesday through the end of the month.
— Reported by Asia Today; translated by UPI
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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260708010003196