FSC Forms Joint Task Force... "Preparing Institutional Reforms for Loan Practices for Multiple-Home Owners"

Emergency Inspection Meeting Held
Discussion on Outstanding Balances and Maturity Profiles of Loans to Multiple-Home Owners

The Financial Services Commission will conduct a full review of the practice of extending the maturity of mortgage loans for multiple-home owners.

Yonhap News Agency

The Financial Services Commission announced that on the afternoon of February 13, it held an "Emergency Inspection Meeting on Maturity Extensions of Loans to Multiple-Home Owners" at the Government Complex Seoul, with participation from all financial sectors.

The meeting was attended by relevant agencies including the Financial Supervisory Service, the Korea Federation of Banks, associations of the secondary financial sector, and the five major commercial banks.

Participants reviewed the outstanding balance and maturity profile of loans to multiple-home owners that were issued in the past, as well as the procedures for maturity extensions, and discussed future improvement measures.

The Financial Services Commission and related agencies, together with all financial sectors, plan to closely examine the current status of loans to multiple-home owners that were issued in the past, including their outstanding balance and maturity profile, and the entire process for maturity extensions, and to promptly supplement any areas that require improvement.

Shin Jinchang, Secretary General of the Financial Services Commission, who chaired the meeting, stressed, "We must thoroughly examine whether financial institutions have been routinely extending the maturity of these loans without carefully reviewing the appropriateness of the loans in question," adding, "Any areas that require improvement must be addressed without delay."

The Financial Services Commission and related agencies plan to establish a joint task force (TF) as soon as possible to conduct an intensive inspection of the actual practices related to maturity extensions of loans to multiple-home owners and to prepare reasonable institutional improvement measures.