Kookmin Bank to Suspend Conditional Jeonse Loans from Next Month 3rd... Additional Measures Announced

KB Kookmin Bank will temporarily suspend the handling of conditional Jeonse deposit loans. Additionally, if customers repay real estate mortgage loans early using their own funds, the early repayment fee will be temporarily waived.

Kookmin Bank announced on the 28th that it will implement these additional household loan measures starting from the 3rd of next month. This announcement comes a day before the implementation of comprehensive household loan measures that restrict the maturity and limits of mortgage loans.

First, Kookmin Bank has decided to limit the loan amount for Jeonse deposit loans within the range of the increased deposit amount when renewing lease contracts. Furthermore, conditional Jeonse deposit loans (such as those involving transfer of ownership by the lessor), which can be used as speculative funds like so-called 'gap investments,' will be temporarily suspended.

When renewing a lease contract, the loan limit will be determined as the lower amount among the increased deposit amount or 80% of the total deposit, minus any previously issued Jeonse loans. For example, if a borrower living in a house with an existing deposit of 200 million KRW has taken a Jeonse deposit loan of 100 million KRW, and the deposit increases to 250 million KRW upon lease renewal, the loan limit will be set at the lower amount between the increased deposit amount of 50 million KRW and 80% of the total deposit minus the existing loan, which is 100 million KRW, resulting in a limit of 50 million KRW.

To alleviate the financial burden on actual users and maintain an appropriate household loan portfolio, early repayment fees will be temporarily waived if customers repay real estate mortgage loans using their own funds (excluding refinancing and transfers to other banks).