According to the financial sector on June 23, Kookmin Bank will limit enrollment in Mortgage Credit Insurance (MCI) and Mortgage Credit Guarantee (MCG) starting June 26.
MCI and MCG are insurance and guarantee products that must be purchased when taking out a mortgage loan. With these restrictions, borrowers will only be able to secure loans within a limited range, excluding small rental deposits, effectively reducing their borrowing limits.
Additionally, starting June 26, the bank will also restrict loans intended for repaying debts to other banks. This includes cases where customers repay loans from other banks and then seek new loans from Kookmin Bank. The bank will also cease accepting refinancing applications from other banks.
Separately, Kookmin Bank has reduced the application limits for loan brokerage firms, reverting to previous levels after temporarily increasing them earlier this year.
A Kookmin Bank official stated, "This is a measure for managing the total volume of household loans."
This action aligns with a broader trend among banks to tighten management of household loans.
As of June 18, the combined household loan balance of the five major banks—Kookmin, Shinhan, Hana, Woori, and NongHyup—was reported at 646 trillion 192 billion won, an increase of over 6 trillion won from the end of April (639 trillion 947.5 billion won). Notably, the mortgage loan balance reached a record high of 614 trillion 535.2 billion won.
In response, NH NongHyup Bank has also limited MCI enrollment and expanded restrictions on MCG since June 11. The bank has also restricted face-to-face sales of certain variable-rate mortgage products and reduced the maximum maturity for non-capital area mortgage loans from 40 years to 30 years. Additionally, mortgage loan interest rates have been increased by 0.2 percentage points.
* This article has been translated by AI.
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