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| ▲ This photo taken Aug. 31, 2025, shows apartment complexes in Seoul. (Yonhap) |
govt-property measure
Gov't to boost housing supply in capital area, toughen mortgage rules in Seoul
SEOUL, Sept. 7 (Yonhap) -- Land Minister Kim Yun-duk said Sunday that the government will supply more homes in the metropolitan Seoul area, as part of efforts to stabilize the housing market.
Unveiling the plan, Kim said the government will build 270,000 new houses in the greater Seoul area every year from 2026 to 2030, which amounts to 1.35 million new homes.
To curb property speculation in Seoul and its neighboring areas, Kim said the government will further tighten lending rules.
Starting Monday, the loan-to-value (LTV) ratio for home-backed loans extended to non-homeowners to purchase homes in the districts of Gangnam, Seocho and Songpa in southern Seoul as well as the central Yongsan district, which have been designated as anti-speculation areas, will be lowered to 40 percent from the current 50 percent, according to financial authorities.
In detail, it plans to supply 23,000 units by reconstructing old public rental houses, 28,000 units by reconstructing old state-owned buildings and 140,000 units by purchasing and refurbishing studio apartments.
The Korea Land & Housing Corp. (LH) will take charge in supplying the newly built homes.
The LTV ratio for rental business operators will be sharply reduced to 0 percent in the anti-speculation areas from the current 30 percent.
The government also decided to put a 200 million-won (US$144,000) cap on "jeonse" loans extended to single-home owners in the greater Seoul and anti-speculation areas.
Jeonse refers to a unique Korean system in which renters give landlords a large returnable deposit instead of paying monthly rent.
Until now, those who own one house could be extended a loan of up to 300 million won for jeonse.
Sunday's announcement follows a series of policy measures implemented in late June to curb soaring home prices, which included a 600 million-won ceiling for home-backed loans for home purchases in the capital area.
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