Starting on the 17th, in principle, maturity extensions for apartment collateral loans in the Seoul metropolitan area and regulated areas will be prohibited for multiple-home owners (two or more dwellings, individual and corporate rental business operators). A delay in disposing of dwellings due to a lack of buyers will not qualify for an extension exception.
According to the financial sector on the 3rd, the financial authorities distributed an additional FAQ related to the "2026 household debt management plan" containing these details to all financial institutions.
The Financial Services Commission announced additional household debt management measures on the 1st of this month and decided to prohibit extensions of existing loans for multiple-home owners in the Seoul metropolitan area and regulated areas starting on the 17th.
According to the additional FAQ distributed by the financial authorities, exceptions will allow maturity extensions for multiple-home owners in unavoidable cases, such as when there is a tenant. However, the financial authorities said that a mere delay in sale due to the absence of a buyer does not warrant an exception.
A "same-bank refinance," switching a loan within the same bank to change terms, will also not be allowed. The Financial Services Commission (FSC) said, "Given the purpose of the regulation, same-bank refinancing of mortgage loans by multiple-home owners is naturally prohibited." In addition, if the borrower is a multiple-home owner, the maturity extension will be restricted even if the collateral provider is a third party.
The criteria for individuals and rental business operators who are multiple-home owners were also specified. A rental business operator refers to a tax-defined rental business operator engaged in real estate leasing, meaning cases where the borrower's primary business at the time the loan was first originated is leasing. Registered rental business operators are included.
If it is difficult to verify the borrower's primary industry at the time the loan was first obtained, a determination can be made based on industries related to the purpose of funds. Even if the primary industry changes to "real estate leasing" after the initial loan origination, the borrower is deemed a rental business operator from that point. If the primary business was leasing at the time of initial origination but changed to another industry at maturity extension, the borrower still falls under the verification scope for multiple-home owners.
Because this measure is limited to "apartments" in the Seoul metropolitan area and regulated areas, mixed-use buildings where the residential area exceeds half are not included in the scope of regulation.
The financial authorities estimate that 17,000 apartment units in the Seoul metropolitan area and regulated areas will be subject to this regulation. The amount reaching maturity this year is estimated at 2.7 trillion won (12,000 units).