Shinhan Bank Restricts Mortgage Loans to 300 Million Won from July 10 as Korean Banks Tighten Credit

According to Yonhapinfomax, Shinhan Bank will halt some mortgage loan guarantee transactions starting July 10, as major South Korean banks tighten lending standards to curb household debt growth. KB Kookmin Bank, the largest mortgage lender, has also cut its loan limit from 600 million won to 300 million won. These measures are expected to reduce transactions in apartments priced at 1.5 billion won or below, particularly affecting first-time homebuyers in Seoul's outer districts.

The South Korea Ministry of Land, Infrastructure and Transport confirmed that government-backed housing fund loans remain unaffected by commercial bank restrictions and will continue within available limits. Prospective buyers unable to secure bank financing may turn to alternative options including inter-family loans.