Financial authorities are reviewing measures to curb loan extensions for owners of multiple homes in regulated areas of the greater Seoul region to cool the overheated real estate market. The Financial Services Commission plans to hold a meeting on Tuesday with major banks to discuss revamping these practices. This comes as the exemption from heavy capital gains tax for multiple homeowners expires in May.
Financial authorities are reviewing measures to curb loan extensions for owners of multiple homes in regulated areas of the greater Seoul region, in line with the government's efforts to cool the overheated real estate market, sources said on Sunday. The Financial Services Commission plans to hold a meeting on Tuesday with the country's five major banks and financial cooperatives to discuss ways to revamp loan extension practices for these owners.
The move follows the government's clarification that an exemption from heavy capital gains tax for owners of multiple homes will expire in May. While the government currently imposes strict limits on mortgage lending for home purchases in the greater Seoul area, some multiple homeowners have been able to extend existing loans through refinancing, which has raised questions about the fairness of the system.
"If there are no particular issues, including tenant protection, loan maturity extensions for owners of multiple homes will, in principle, be disallowed," a senior financial official said.
This initiative aims to address speculation in the real estate market and enhance fairness, with considerations for tenant protections. Authorities are expected to outline specific guidelines following the meeting.
