KB Kookmin Bank Caps Mortgage Loans at 300 Million Won from July 10, Straining Homebuyer Funding

According to KB Kookmin Bank, South Korea's largest lender, the bank started limiting home purchase mortgage loans to a maximum of 300 million won nationwide from July 10, creating a cash crisis for homebuyers preparing final installment payments. Inquiries surged at real estate agencies in Seoul's northern districts, where borrowers struggle to cover down payments after pledging 50 million won in advance. Analysis indicates that loans account for 40% of home purchases by people in their 30s, rising to 60% in some areas such as Nowon and Jungnang districts, suggesting potential transaction declines in mid-to-low-price apartment markets.

Meanwhile, Seoul City accelerated housing supply by elevating the chief administrator overseeing construction projects to vice mayor level and streamlining municipal permit processing. As part of efforts to achieve 310,000 housing units by 2031, Seoul targets early construction launches for 85 projects involving 85,000 units currently in management plan approval and relocation phases. Construction companies have accelerated private bond issuance, with 2026 private bond placements reaching 9.468 trillion won through the first half, as uncertainty in public bond markets persists.