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[Alpha Biz= Kim Jisun] Seoul, July 14, 2025 — South Korea’s major banks are suspending new home mortgage applications submitted through loan brokers, in response to the government’s reinforced regulations aimed at curbing total household debt.



According to financial industry sources on July 14, Shinhan Bank has halted broker-originated mortgage applications for properties in the Seoul metropolitan area scheduled for disbursement in August and September. The measure is part of quarterly household loan quota management. Applications received by July 15 will still be processed.



Hana Bank also announced a suspension of new mortgage and jeonse (long-term lease) loan applications via brokers, effective July 14, for loans to be disbursed in August. Applications already received by the end of July will be honored.



Hana Bank had earlier introduced monthly loan caps per loan agency starting June 26, as a preemptive measure for managing household debt levels.



NH NongHyup Bank has already exhausted its quota for loans through September and is not accepting further applications through brokers. Similarly, the Industrial Bank of Korea (IBK) previously suspended broker-submitted mortgage applications for August and September disbursements, though loans scheduled for July will proceed as planned.



These actions reflect the financial authorities' increased efforts to regulate total household loan volumes, with a focus on reducing lending through third-party channels. Further tightening measures may follow in the second half of the year.

 

 

 

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