South Korea's Mortgage Limits Slashed to $215,000 as Banks Impose New Caps

South Korean banks are tightening restrictions on mortgage loans, with some capping new home-buying loan amounts at 300 million won (approximately $215,000 USD) starting in August. This move follows the government's declaration to separate real estate and financial markets.

The new limit is significantly lower than the government's guideline of 600 million won, effectively halving the maximum loan amount available for many prospective buyers. This abrupt change has created an urgent situation for individuals who need to secure funds to complete their property purchases, particularly those who had planned their finances around previous lending conditions.

KB Kookmin Bank has announced it will limit the maximum amount for home-buying loans to 300 million won until further notice, effective from July 10. This decision reflects the broader trend among financial institutions to comply with and adapt to the government's stricter regulatory environment aimed at cooling the housing market.