Household Loans Reflect Surge in Seoul Housing Prices
with a Time Lag
Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), stated that the surge in housing prices in Seoul and some areas of the metropolitan area during February and March is being reflected in household loans with a time lag since the end of last month, and that they are closely monitoring the situation.
On the morning of the 1st, Governor Lee held an executive meeting at the headquarters in Yeouido, Seoul, saying, "The impact of the short-term surge in housing prices and transaction volumes in some areas of Seoul and the metropolitan area has been gradually reflected in household loans since late March with a time lag," and added, "We are closely monitoring loan applications, approvals, and handling by region."
According to the FSS, as of last month, the month-on-month increase rate in housing transaction volume was 79.0% for all of Seoul, but 108.7% in Gangnam, Seocho, and Songpa districts, and 108.0% in Mapo, Yongsan, and Seongdong districts.
Regarding the U.S. executive order on reciprocal tariffs, Governor Lee warned that financial market volatility could expand significantly and urged employees to remain vigilant and diligently perform their duties.
He said, "Even after the announcement of tariff policies, market volatility may continue to expand for a considerable period depending on negotiations and responses from various countries," and emphasized, "We must closely monitor tariff policies and responses, and thoroughly examine their impact on the domestic economy and individual industries." He added, "As movements of global funds toward countries such as Europe and China are also being observed, it is necessary for South Korea to create conditions that attract global investment funds through progress in discussions on economic revitalization and the advancement of the capital market, including shareholder protection."
Regarding the full resumption of short selling, Governor Lee stated, "Although the U.S. stock market decline and Trump's tariff policies, among other complex factors, caused increased market volatility simultaneously with the resumption of short selling yesterday, short selling contributes to lowering market volatility in the mid to long term, so we must actively explain this to alleviate concerns."
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