"No Grace Period for Didimdol Loans Restriction, People Who Trusted the Government Suffer" [2024 National Audit]

Ministry of Land, Infrastructure and Transport "Consultation Among Government Agencies"

The opposition strongly criticized the government for requesting commercial banks to restrict the handling of Didimdol loans.

On the 16th, Moon Jin-seok, a member of the Democratic Party of Korea, criticized at the National Assembly Land, Infrastructure and Transport Committee's audit that the government made it mandatory to apply a small tenant deposit deduction (Banggongje) for Didimdol loans without any official notice or grace period, saying, "Where is a policy that is implemented overnight like this without any official document or grace period?"

Recently, the Ministry of Land, Infrastructure and Transport and the Housing and Urban Guarantee Corporation (HUG) requested cooperation from commercial banks handling Housing and Urban Fund loans to mandatorily apply the tenant deposit deduction when calculating the Didimdol loan amount. They also blocked new apartment Didimdol loans that proceed with subordinate collateral. KB Kookmin Bank has followed the policy since the 14th, Woori Bank since the 15th, and the remaining banks such as Shinhan Bank and NH Nonghyup Bank are scheduled to implement it from the 21st.

In response, Kim Kyu-chul, Director of the Housing and Land Office at the Ministry of Land, Infrastructure and Transport, explained, "We did not change the loan conditions themselves," adding, "The policy loan funds are limited, and this is to allow more applicants to benefit." He also said that the content was agreed upon among government-related agencies.

The Didimdol loan is designed to allow loans up to 70% of the loan-to-value ratio (LTV) within a maximum of 250 million KRW per household for houses priced at 500 million KRW or less (600 million KRW for newlywed families and families with two or more children, with a maximum loan of 400 million KRW). However, from now on, only the amount after deducting the tenant deposit deduction (Banggongje), which corresponds to the priority repayment amount for tenants (ranging from 25 million to 55 million KRW depending on the region), can be borrowed. From the borrower's perspective, this means they cannot borrow up to the full limit.

Rep. Moon said, "Until recently, they said they would not apply this to Didimdol loans, but suddenly applying the tenant deposit deduction, where are people supposed to find the remaining funds?" He pointed out, "Won't people who trusted the government and purchased homes suffer damages?" He added, "Even local markets don't operate like this. How can the government be trusted like this?" and urged, "Immediately prepare countermeasures."