Extension Allowed for Jeonse Loan Guarantees for Owners of High-Value Homes Exceeding 900 Million Won

Source: Financial Services Commission

[Asia Economy Reporter Sim Nayoung] The extension of jeonse loan guarantees for owners of high-priced homes exceeding 900 million KRW has been applied from the maturity cases on the 21st, ensuring the residential stability of single-homeowners.

The Financial Services Commission announced on the 27th that from the 21st onward, jeonse loan guarantees can be extended for loans reaching maturity (retroactive application possible).

This is part of the "Lease Market Stabilization Measures" announced at the 1st Real Estate Related Ministers' Meeting held on the 21st.

Previously, if a homeowner with a non-high-priced home valued at 900 million KRW or less took out a jeonse loan and then became a high-priced home owner due to market price increases, the extension (renewal) of the jeonse loan guarantee was not possible.

However, with this system improvement, even if the market price fluctuates and the homeowner becomes a high-priced home owner exceeding 900 million KRW, the extension and renewal of the jeonse loan guarantee is allowed until the time of moving out.