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KB Kookmin halves mortgage cap as Korea household debt swells
KB Kookmin halves mortgage caps in Seoul and nationwide as household loan growth triggers tighter restrictions. Shinhan has already suspended broker loans.
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KB Kookmin Bank is cutting its maximum home-purchase mortgage loan in half, one of the more direct steps a South Korean lender has taken this year to slow a buildup in household debt.
The new limits take effect Friday and stay in place until further notice, the bank said. In the Seoul metropolitan area and other government-designated regulated zones, the ceiling drops to 300 million won ($199,000) from 600 million won ($398,000). For homes above 2.5 billion won ($1.66 million), the cap is set at 200 million won.
Outside the capital region and outside regulated areas, the bank is also imposing a 300 million won cap. Previously there was no separate limit for those markets, which means the restriction now reaches beyond the most heavily regulated parts of the country.