The allocation discussions for the increased household loan limit of 30 trillion won for the second half of the year have been effectively concluded in the financial sector. A significant portion of this amount will be designated for group loans and policy loans, with estimates suggesting that between 6 trillion and 8 trillion won will be available for general mortgage and credit loans.
According to the financial sector on the 30th, financial authorities and institutions have nearly finalized the allocation discussions for the expanded household loan limit management capacity this year, as outlined in the comprehensive real estate measures announced on August 13. Specific targets for each financial institution will be adjusted, and the final amounts are expected to be confirmed soon.
Of the newly increased 30 trillion won in loans, the capacity available for general mortgage and credit loans is estimated to be between 6 trillion and 8 trillion won, accounting for approximately 20% to 27% of the total increase. The remainder is expected to be allocated to group loans and policy-driven financial areas.
General mortgage and credit loans are projected to receive the largest share among the allocations to banks. This distribution considers the scale and proportion of household loans handled by banks, mutual finance, insurance, savings banks, and other financial institutions. The combined target for the five major banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) is expected to increase by about 2.64 trillion won, from approximately 43.4 trillion won to 69.8 trillion won annually.
However, considering the accumulated increase in household loans, even if the target is adjusted upward, the additional capacity is expected to be modest. As of the 27th, the outstanding household loan balance of the five major banks (excluding policy loans) was 651.6377 trillion won, an increase of 6.6677 trillion won from the end of last year (644.970 trillion won). The new increase target's surplus is only about 300 billion won.
Group loans, which are directly related to housing supply, such as moving expenses, interim payments, and final payments, will likely account for a significant portion of the increase, as they are managed as policy reserves exempt from total loan regulations. Financial institutions can still engage in group loans even if they have already exceeded their annual targets. For instance, the five major banks have tripled the limit for the 'DH Bangbae' final payment loan from an initial 500 billion won to 1.55 trillion won. Mutual finance sectors, such as Saemaul Geumgo, which had a net increase of 0% this year, are also expected to resume group loan activities soon.
The proportion of mid-interest loans for low to medium credit borrowers that are exempt from total loan management is also expected to increase. Banks will be recognized for up to 70%, up from the previous 30%, while the second financial sector will be entirely exempt. This is to ensure that funds can be supplied to borrowers who need them, separate from general household loans.
Starting in October, the anticipated increase in youth special jeonse loan guarantees will also be included in the policy reserve. Authorities plan to expand the support for youth special jeonse loan guarantees to individuals up to 39 years old, with guarantees of up to 300 million won for newlyweds and families with children.
Financial authorities will closely monitor the status of group loans being processed in August and September, keeping an eye on the situation on the ground. They believe that the newly secured loan capacity will be sufficient for managing household loans. Therefore, the likelihood of adjusting the target increase rate for household debt, currently set at 3% for the year, is low.
* This article has been translated by AI.
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