The financial authorities will focus on checking whether there are cases of using business loans for housing transactions or receiving expensive dwellings as informal gifts through 'parental opportunities.'
On the 3rd, the Financial Services Commission held a 'household debt inspection meeting' chaired by Secretary-General Kwon Dae-young to discuss the status of household debt management enhancement and measures for inspecting illegal or unusual transactions. The meeting was attended by relevant agencies including the Ministry of Economy and Finance, Ministry of Land, Infrastructure and Transport, National Tax Service, Bank of Korea, Financial Supervisory Service, Seoul City, as well as the Korea Federation of Banks, associations from the secondary financial sector, and the five major commercial banks.
On the 27th, the Financial Services Commission announced ultra-high-strength loan regulations limiting the housing mortgage loan (mortgage loan) ceiling to 600 million won for purchasing dwellings in the metropolitan area.
The Financial Services Commission, along with the FSS, will significantly strengthen checks on the use of business loans for purposes other than intended and will immediately recover the loan amounts in the event of illegal activities. Additionally, a prohibition on new loans for one year will be enforced after the first detection and for five years after the second detection.
The National Tax Service will utilize financing plans to conduct a detailed analysis of the sources of funds for expensive dwellings and verify whether tax reporting has been done appropriately. In particular, if it is confirmed that funds were received as informal gifts from parents or if income is omitted, a strict tax investigation will be conducted.
The Ministry of Land, Infrastructure and Transport will confirm cases of informal gifting, suspicious sources of funds, false contract reporting, and up-down contracts through real transaction analysis with local governments such as Seoul City. If any violations are found, fines will be imposed and the matter will be reported immediately to investigative agencies and the National Tax Service.
Secretary-General Kwon Dae-young stated, "We will thoroughly manage the limited loan resources so that they do not stimulate the housing market and flow into productive areas such as capital markets and corporations, rather than speculative areas, contributing to economic recovery."
The relevant agencies plan to hold weekly household debt inspection meetings starting from this meeting.