South Korea's Financial Regulator Vows to Resolve Mortgage Issues for Pre-Regulation Buyers

South Korea's top financial regulator has promised to address the concerns of homeowners struggling with final mortgage payments, particularly those who secured loans before recent regulatory tightening. Lee Bok-hyun, the chairman of the Financial Services Commission (FSC), stated on July 23 that he would work with banks to find a resolution.

Lee's remarks came during a public forum on real estate policy held in Seoul. An attendee raised the issue of homeowners who had purchased apartments for actual residency before the loan regulations took effect, questioning the need for exceptions or transitional measures for their final payments.

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We will find a point of resolution for demand-driven buyers who received pre-sale loans before regulations.

The FSC chairman acknowledged the problem, explaining that the current regulations on overall loan volumes were creating difficulties. He committed to exploring ways to support these specific borrowers, indicating a willingness to find a middle ground between financial stability and alleviating homeowner burdens.

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As we regulate the total loan volume, ...