A view of apartment complexes in Seoul seen from the Lotte World Tower, Wednesday / Yonhap
The Financial Services Commission (FSC) will expand housing finance support for young people, newlyweds and first-time homebuyers while maintaining its overall household-debt controls, as part of the government's efforts to stabilize the housing market, the regulator said Thursday.
FSC Chairman Lee Eog-weon announced a package of measures aimed at ensuring tighter lending rules do not unnecessarily restrict financing for genuine homebuyers or new housing construction.
The commission will maintain existing loan-to-value and debt-service ratio rules, while allowing banks to continue providing loans linked to new housing supply and home purchases by young and first-time buyers without being excessively constrained by household lending quotas.
A key part of the package is a three-pronged housing finance program for younger borrowers. The FSC plans to introduce a mortgage loan providing longer-term financing for young people preparing to purchase homes, alongside a new guarantee product for "jeonse" deposit refunds.
