Woori Bank Restricts Mortgage Loans for Homeowners Purchasing in Gangnam 3 Districts and Yongsan

Woori Bank announced that starting from the 28th, it will suspend the issuance of new mortgage loans for the purpose of purchasing houses located in Gangnam, Seocho, Songpa, and Yongsan districts in Seoul.

New loans can only be granted if all household members listed on the resident registration certificate are non-homeowners at the time of the loan application. It is also possible if the borrower becomes a non-homeowner by selling their previously owned house. However, the sales contract and proof of deposit receipt must be submitted. The final payment date for the sold house must be within three months from the loan disbursement date.

Woori Bank had resumed loan issuance for additional home purchases in the metropolitan area by customers owning one or more houses last month on the 21st, after a suspension of about five months.

Woori Bank stated, “Due to the lifting of land transaction permission zones and the base interest rate cut, a short-term surge in housing prices is expected in certain areas of Seoul. To manage risks and supply funds mainly to genuine buyers outside speculative zones, we have decided to restrict loan issuance.”