Financial Services Commission Extends Loan Regulation Easing Measures for 'Jeonse Fraud Victims'

Continued Loan Regulation Easing Measures for Securing Auction Funds for Damaged Houses
One-Year Extension of Loan Regulation Easing Measures for Home Purchase Purposes

Measures to ease loan regulations, such as auction loans, to support victims of Jeonse fraud will be extended.

On the 26th, the Financial Services Commission held a regular meeting and approved partial amendments to five regulations, including the Banking Supervision Regulations, containing these measures. This regulatory amendment aims to extend the measures as the deadline for the loan regulation easing measures to support victims of Jeonse fraud approaches on June 30.

According to the current supervision regulations, victims of Jeonse fraud determined under the "Special Act on Support for Victims of Jeonse Fraud and Housing Stability (Jeonse Fraud Victims Act)" can apply eased Loan-to-Value (LTV) and Debt Service Ratio (DSR) regulations when acquiring their residence (Jeonse fraud victim housing) through auction or purchasing a new home.

For mortgage loans to Jeonse fraud victims, DSR and Debt-to-Income (DTI) regulations are exempted within a maximum limit of 400 million KRW, and for auction funds of the victim housing, loans can be granted up to 100% of the auction price. Additionally, for general mortgage loans for home purchases, the LTV regulation is eased up to 80% but only in non-regulated areas.

With this amendment to the supervision regulations, financial support for Jeonse fraud victims will continue in accordance with the Jeonse Fraud Victims Act. Loan regulations for securing auction funds for victim housing will remain eased as before, and the easing regulations for loans for general home purchases, excluding victim housing, will be extended for one year until June 1 of next year (with a review of extension after one year). This amendment will take effect immediately.