Overview

• From next week all lenders must reduce aggregate household lending quotas to 50 percent of their earlier targets.
• Home-backed loans for purchases in the Seoul metropolitan area will be capped at 600 million won with maximum terms of 30 years.
• Individuals owning two or more homes in regulated zones will be barred from new mortgages and buyers must occupy financed properties within six months.
• Policy loan targets for low-income earners and newlyweds will be slashed by 25 percent, and the government has halved its second-half bank loan supply target.
• The non-price measures coordinated by the FSC, Bank of Korea and key ministries aim to cool speculative demand without further interest rate adjustments.