Lee Eogwon, Chairman of the Financial Services Commission, Appears on KBS News
Lee Eogwon, Chairman of the Financial Services Commission, stated that there are "no plans for the time being" to apply the Debt Service Ratio (DSR) to jeonse loans for people without homes.
Chairman Lee made this statement during an appearance on KBS News on October 16. The Financial Services Commission has decided to include jeonse loans (interest repayment portion) for single-home owners, which had previously been excluded from lending regulations, in the DSR calculation starting this month. However, the commission clarified that, for now, it does not plan to include jeonse loans for people without homes in the regulations, citing the need to ensure housing stability for ordinary citizens.
Regarding the real estate measures announced the previous day, he explained, "The market has assessed these as exceptionally strong and proactive steps that exceed expectations, but there are also differing opinions on some aspects. We will closely monitor market conditions."
Addressing criticism that tightening loan limits will allow only the wealthy to buy homes, he emphasized, "First-time homebuyers can still utilize the previous Loan-to-Value (LTV) ratio of 70 percent, and policy mortgages frequently used by young people and newlyweds remain unchanged."
He added, "The most important thing is that ordinary citizens must be able to purchase homes stably. We will cut off real estate instability early and establish a foundation for long-term stability, supporting ordinary citizens in securing homes over the mid to long term."
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