KB Kookmin Bank Restricts Mortgage Insurance Enrollment... Tightening Household Lending

KB Kookmin Bank branch view.

KB Kookmin Bank has suspended the enrollment of mortgage insurance (MCI and MCG).

According to KB Kookmin Bank on November 11, enrollment in MCI and MCG will be temporarily restricted starting today.

MCI and MCG are types of insurance that are taken out simultaneously with mortgage loans. Without this insurance, loans can only be granted for the amount excluding the small deposit for tenants. As a result, this measure is expected to reduce the maximum loan limit.

The banking sector explained that if enrollment in MCI and MCG becomes difficult, the maximum loan limit will decrease by 55 million won in Seoul, 48 million won in Gyeonggi Province, 28 million won in other metropolitan cities, and 25 million won in other regions, respectively.

KB Kookmin Bank stated, "This is an unavoidable measure to maintain an appropriate level of household lending." The bank added, "However, to protect ordinary citizens and genuine homebuyers, collective loans (for move-in balances), Bogeumjari Loans for construction, and fund-based loans are excluded from these enrollment restrictions."