The National Credit Union Federation of Korea announced on the 31st that it will implement measures to stabilize household loans starting from the 6th of next month. Although household loans have been maintained steadily throughout the year, this move aims to manage household debt risks in accordance with the recent financial authorities' policy to curb the increase in household loans.
First, the limit on housing mortgage loans for living stabilization funds for multi-homeowners will be capped at 100 million KRW, and MCI-guaranteed loans for those owning more than one home will be restricted to preemptively block housing mortgage loans for investment purposes.
For loans secured by houses located in the metropolitan area obtained from financial institutions other than credit unions by multi-homeowners, refinancing loans at credit unions will be discontinued. This is a proactive measure to prevent the 'balloon effect.'
They plan to strengthen daily monitoring and continuously check household loan trends by each cooperative to manage and prevent any sudden increases.
A representative from the National Credit Union Federation of Korea stated, “We will continuously strive to maintain a stable household debt ratio and minimize the burden on genuine borrowers and low-income households. Through these stabilization measures, we will join the effort to stabilize household loans and prepare additional measures if necessary.”
The National Credit Union Federation of Korea announced on the 31st that it will implement measures to stabilize household loans starting from the 6th of next month.
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