A KB Kookmin Bank branch in Seoul. Photo by Hyojoon Jeon/ UPI
July 8 (Asia Today) -- KB Kookmin Bank will cut its ceiling on home-purchase mortgage loans by half as part of an aggressive move to tighten management of household lending.
The bank said the new limits will take effect Friday and remain in place until further notice. KB Kookmin said the measure is a self-imposed restriction intended to preemptively adjust its household loan portfolio and support stable loan management.
Under the change, the maximum home-purchase mortgage loan in the Seoul metropolitan area and government-designated regulated areas will be reduced to 300 million won ($199,000) from 600 million won ($398,000).
For homes valued at more than 2.5 billion won ($1.66 million), the maximum loan will be limited to 200 million won ($133,000).
