KB Kookmin Bank to halve mortgage loan limit to 300 million won

KB Kookmin Bank is set to reduce its mortgage loan limit to 300 million won from the current 600 million won, a move that will take effect nationwide starting July 10. This decision, which halves the limit set by financial authorities, comes as the bank seeks to proactively manage its household debt. The bank attributes the need for stricter controls to a continuous rise in mortgage loans, fueled by "debt-to-invest" trends and escalating housing prices.

While the 600 million won limit will be maintained for properties exceeding 2.5 billion won, the new 300 million won cap will also apply to non-regulated areas, which previously had no specific limit. However, certain loan types, including collective loans, government-supported loans, and loans for victims of "jeonse" fraud, will remain unaffected.

Beyond the mortgage limit reduction, KB Kookmin Bank has also implemented other measures to curb household lending. These include temporarily halting the one-time subscription of mortgage insurance (MCI/MCG) and restricting loans that involve repaying a debt at another bank before taking out a new one with KB Kookmin. The bank also ended its preferential mortgage rate coupon program in June, which effectively increases borrowing costs.

These actions are part of KB Kookmin Bank's strategy to ensure stable management of household loans and adhere to the monthly mortgage loan volume targets set by financial authorities since April. Other major commercial banks, such as Shinhan Bank and Hana Bank, are also tightening their household loan management, with some suspending services through loan agents to control the overall increase in household debt.