Lee instructs review of regulations on loan extensions for existing multi-home owners

▲ President Lee Jae Myung (Yonhap)

Lee-housing prices

Lee instructs review of regulations on loan extensions for existing multi-home owners

By Chae Yun-hwan

SEOUL, Feb. 20 (Yonhap) -- President Lee Jae Myung said Friday he has instructed the Cabinet and his office to review regulations on extensions and refinancing of loans for existing owners of multiple homes.

Lee made the announcement on the social media platform X after questioning last week the fairness of extending the maturity of existing loans for multi-home owners amid complaints over tight lending regulations when purchasing new homes in the Seoul metropolitan area.

"(I) have instructed the Cabinet and the secretariat to review clear regulatory measures on extensions and refinancing of loans for existing multi-home owners," he wrote. "A republic of unearned real estate income must be dismantled for a happier Republic of Korea."

"Extensions or refinancing of loans after they mature is not fundamentally different from new loans," he said. "Wouldn't it be fair for loan extensions or refinancing for existing multi-home owners to be identical to regulations on new purchases of multiple homes?"

Lee added that if the shock from eliminating loans all at once is too great, they could be implemented in phases.

Lee's remarks are widely seen as calling to attention the relatively favorable conditions for loans for existing multi-home owners and the need to remedy the situation.

The government currently imposes stricter mortgage limits on home purchases in the greater Seoul area to cool the overheated real estate market. The policy has faced criticism over fairness as some owners of multiple homes are able to extend existing loans by refinancing their properties, an option not available to those seeking to purchase new homes under tightened rules.

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