Seller financing spreads to high-end homes beyond Seoul

A real estate financing method, known as 'seller financing' or 'seller-backed mortgage,' is gaining traction in South Korea's high-value housing markets. This approach, where the seller directly lends money to the buyer, has been observed beyond the affluent Gangnam district and is now appearing in other parts of the Seoul metropolitan area and even in Busan.

The trend is reportedly fueled by the government's stringent loan regulations, which make it increasingly difficult for potential buyers to secure financing from traditional banks. Seller financing offers an alternative pathway for these buyers to acquire property by borrowing directly from the seller.

This method gained public attention following the sale of an apartment owned by President Lee Jae-myung, who reportedly utilized a 'seller-backed mortgage' arrangement. The expansion of this practice suggests a broader shift in the real estate market, driven by the need for alternative financing solutions in a tightly regulated lending environment.