President Lee Jae-myung ordered a review of rules on extending loans and refinancing for multiple home owners, and on the 20th the Financial Supervisory Service set up a task force (TF) to take a close look, by industry, at the status of loans to multiple home owners.
The Financial Supervisory Service (FSS), under instructions from Governor Lee Chan-jin on the morning of the 20th, set up a "response to multiple home owner loans" TF and held its first meeting. The deputy governor for banking and small finance will serve as Director General, and department heads from the Banking Risk Supervision Department, Small Finance Supervision Department, Credit Finance Supervision Department, and Insurance Supervision Department joined.
The TF plans to closely examine, by industry, the status of loans related to multiple home owners, including individuals with two or more dwellings and individuals operating businesses in home sales and rentals. It is known to analyze, across all financial sectors, the status of multiple home owners by borrower type such as individuals and sole proprietors, by loan structure such as lump-sum and partitioning repayment, by collateral type such as apartments and non-apartments, and by region such as the greater Seoul area and non-capital regions. It will identify differences in current rules, practices, and by industry, use that as a basis to craft improvements, and, if needed, consult with the Financial Services Commission and the Ministry of Land, Infrastructure and Transport.
An FSS official said, "Unlike new originations, there is a need to improve the rules on loans to multiple home owners that are handled loosely at maturity extensions."
Earlier, on the 13th, the president wrote on X (formerly Twitter), "We even cut capital gains taxes and gave them years of chances, so would it be fair to add the benefit of loan extensions only for those who held out without reducing multiple homes," noting the need to overhaul systems related to multiple home owners.
After the president's remarks, some predicted that the interest repayment ratio (RTI) would be applied strictly when extending maturities on loans to rental business operators. But the president posted again that day, saying, "Why review only the RTI rule? Loan extensions or refinancing after a loan term expires are, in essence, no different from new loans," and ordered officials to grasp the contents of rules on loans to new multiple home owners, the status of loan extensions and refinancing by existing multiple home owners, and to review firm regulatory measures.