All Four Major Banks to Handle Dunchon Jugong Final Payment Loans... Shinhan Starting Next Year

Participation of Four Major Banks under 'Household Debt Management' Policy
Shinhan to Set 100 Billion KRW Limit Starting Next Year

All major domestic commercial banks have decided to participate in the final payment loans for Olympic Park Foret On (Dunchon Jugong), considered the largest reconstruction project since the era of Dangun. However, Shinhan Bank plans to join in earnest starting next year.

On the 25th, the construction of the 'Olympic Park Foreon' project in Dunchon-dong, Gangdong-gu, Seoul, which had been halted due to intensified disputes over construction costs ahead of next month's move-in, resumed. Officials are working at the Olympic Park Foreon construction site in Gangdong-gu. Photo by Jo Yongjun

According to the financial sector on the 11th, the four major domestic commercial banks (KB Kookmin, Shinhan, Hana, and Woori) recently agreed to participate in the final payment loans for Dunchon Jugong. Final payment loans refer to mortgage loans collectively received by new housing buyers from financial institutions.

KB Kookmin Bank had already decided to participate in the Dunchon Jugong final payment loans on the 6th. The loan limit is 300 billion KRW, with an interest rate of 4.8% based on a 5-year periodic type. Hana Bank also sent an official letter stating it will handle final payment loans with a limit of 300 billion KRW. The interest rate is a minimum of 4.641% based on a 5-year fixed (hybrid) rate.

Woori Bank is also discussing participating in the Dunchon Jugong final payment loans this year with a limit of 50 billion KRW. The interest rate is reported to be around 4.8%. A Woori Bank official explained, "We have decided to participate in the final payment loans," adding, "The limit will be increased next year if necessary."

In the case of Shinhan Bank, it is reported that an official letter was sent to branches stating participation in the Dunchon Jugong final payment loans, but loan handling will begin from next year. The limit is about 100 billion KRW. The interest rate was set at the 5-year financial bond rate plus 1.5 percentage points. Shinhan Bank’s decision to specify next year as the start time for handling final payment loans is interpreted as considering the ongoing household debt management policy.