According to the financial sector on June 29, IBK Industrial Bank plans to gradually halt group loans through loan consultants starting in August. Other banks are also considering limiting new group loans or enhancing assessments in line with household loan management policies. While group loans will not be completely suspended, the reduction in competitive recruitment among banks means that borrowers will face higher thresholds for obtaining loans.
Similar trends are emerging in the mutual finance sector. The Financial Services Commission plans to convene some mutual finance companies that have shown an increase in group loans to review the current state of household lending. If mutual finance, which has served as an alternative to commercial banks, also raises its lending thresholds, it is expected to further limit options for genuine borrowers.
Market analysts believe that high-end apartment complexes in Gangnam, which are set to be sold in the second half of the year, will be directly affected. A notable example is the 'Banpo The DH Class' (BandiCl), which is undergoing reconstruction at the Banpo Jugong 1st Complex in Seocho District, Seoul. This massive project, consisting of 5,007 units, will require several trillion won in group loans.
Although the project is scheduled for sale in September, specific schedules for interim financing have yet to be finalized. Given the current situation, it is anticipated that finding financial institutions willing to provide group loans will be challenging. Particularly for projects with a delayed sale, which have a short timeframe of just over a year from sale to occupancy, banks are expected to be hesitant to participate in interim financing.
For upcoming sales, securing financial institutions for interim financing will be crucial, while for projects nearing occupancy, the limits and availability of final payment loans will be key variables. As the group loan market contracts, the financial planning for applicants and future residents will inevitably become more stringent.
However, this does not mean that loans for these projects will be entirely halted. Banks will continue to offer individual loans through their branches while stopping applications through loan consultants to reduce excessive recruitment competition. Nevertheless, with tightened lending management policies and the need for borrowers to apply directly at banks, the burden of securing funding is expected to increase.
The 'Banpo Raemian Trinione' (Banraet), scheduled for occupancy in August, and 'The DH Banpo', set for September, will see varying impacts based on their recruitment announcement dates. The Banraet, which had its recruitment announcement on October 31, 2025, will be subject to loan limit regulations based on housing price brackets due to the 10·15 measures. As a result, the maximum final payment loan for a 59 square meter unit is expected to be 400 million won, while for an 84 square meter unit, it is projected to be 200 million won.
In contrast, The DH Banpo, with a recruitment announcement date in August 2024, will not be subject to the maximum 200 million won limit under the 10·15 measures. For first-time homebuyers who are original subscribers, loans of up to 50% of the sale price will be available. KB Kookmin, Shinhan, and Hana Banks are participating in interim financing and are expected to offer final payment loans as well.
An industry insider stated, "As government regulations reduce loan limits, if financial institutions also tighten group loan supply, the burden of securing funds for genuine buyers could become significantly heavier than anticipated. Especially in high-priced areas like Gangnam, there may be increasing cases where buyers need to secure additional cash in the millions of won."
* This article has been translated by AI.
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