First Half Real Estate Finance Loans Up 36.2 Trillion Won From Last Year-End: "Strong Lending Regulations and Consistent Government Policy Needed" [2025 National Audit]

Real estate-related guarantees reach 1,068.1 trillion won,
Increase led by household guarantees such as jeonse loans
"Previous administration's relaxation of lending regulations and this year's interest rate cuts...
The government must do its utmost to manage real estate finance lending"

In the first half of this year, real estate finance exposure (loans) increased by more than 36 trillion won compared to the end of last year. The ratio to nominal gross domestic product (GDP) and the ratio to private credit remain high, prompting calls for the government to strictly manage real estate finance lending.

Apartment complex viewed from Namsan, Seoul. Photo by Yonhap News Agency

According to data received by Assemblyman Cha Kyugeun of the National Assembly Strategy and Finance Committee from the Bank of Korea on October 29, real estate finance exposure in the first half of this year reached 2,717.9 trillion won, an increase of 36.2 trillion won compared to the end of last year.

As of June, real estate finance exposure (2,717.9 trillion won) accounted for 104.8% of nominal GDP and 52.1% of private credit. Compared to last year, both the ratio to nominal GDP (104.9%) and the ratio to private credit (52.4%) decreased slightly, but the overall scale remains high.

Looking at the details, household real estate loans totaled 1,328.9 trillion won, with mortgage loans increasing by 24.3 trillion won and housing pension payments rising by 1 trillion won. General corporate real estate collateral loans totaled 719 trillion won, with loans to the entire corporate sector (including sole proprietors) increasing by 25.4 trillion won. In contrast, loans to real estate and construction companies and real estate project financing (PF) loans decreased.

Meanwhile, real estate-related guarantees totaled 1,068.1 trillion won, with household guarantees such as jeonse loans rising by 15.4 trillion won and housing pension supply increasing by 6.2 trillion won. Guarantees for business operators and PF debt guarantees decreased. Financial investment products totaled 372.5 trillion won, with only mortgage-backed securities (MBS) decreasing, while real estate funds, real estate investment trusts (REITs), and commercial paper (CP) increased.

Assemblyman Cha stated, "Real estate finance, including mortgage loans and household guarantees, has increased due to the previous administration's relaxation of lending regulations and this year's interest rate cuts." He emphasized, "Since liquidity is currently abundant and all asset markets are performing well, it is important to ensure that the increased liquidity does not flow back into the real estate market." He added, "The Lee Jaemyung administration must do its utmost to stabilize housing prices through strong lending regulations and consistent government policies."