On the 12th, a temporary bank booth in Seocho-gu, Seoul, became chaotic as potential residents of the DH Bangbae Apartments rushed to apply for final payment loans. In addition to those who had already applied on a first-come, first-served basis the day before, many others arrived, asking, “Can loans be submitted on-site?” The bank’s loan limit of 100 billion Korean won, announced at 1 p.m. the previous afternoon, was fully used up within just a few hours. As loan officers’ phones became unavailable while handling applications, some people expressed their frustration. A “first-come, first-served loan race” began in the Gangnam mega-complex, which consists of 3,064 households scheduled to move in next month.
This year, with the annual household loan limits set by financial regulators having been fully used up, banks are compelled to turn away customers who have adequate collateral and income, despite having the capacity to process loans. Large residential complexes facing upcoming move-ins are experiencing unintended consequences. Seoul Banpo RAEMIAN Trini One (2,091 households) is moving in this month, while Eunpyeong-gu Hillstate Mediale (2,451 households) in the northern part of Seoul will move in October, but these major complexes are currently in a crisis.
Recently, potential residents of major apartment complexes in Seoul and Gyeonggi have reported that it is extremely difficult to get in touch with loan agents. In group chats for those looking to move in, incidents such as “I received a loan application guide message, but it disappeared within seconds” have increased. In certain buildings, banks have set up centralized submission points, and if 2–3 loan agents fail to answer calls, online applications are no longer possible. As a result, the chance to compare loan rates and terms has disappeared, leading to a rush to submit applications first and check the conditions afterward.
This trend has already expanded throughout the metropolitan region. In Bucheon City, Gyeonggi Province, where the Songnae Station Prugio Centvien (1,045 households) will be moving in next month, potential residents are worried because banks have restricted loan allocations to 55 billion South Korean won. A representative from a real estate agency that focuses on apartments stated, “Some people are deciding not to move in and are putting their units up for sale due to concerns about final payment loans.”
In apartments where loan limits were set at 200 million South Korean won because of last year’s property regulations, there have been complaints about inadequate moving-in funds. A representative from a luxury apartment brokerage in Gangnam stated, “Even among high-income professional residents, some are said to have taken out private loans to obtain the necessary money.” According to on-the-ground reports, restricted loans could also complicate the renting or selling of units.
Only a limited number of complexes have managed to overcome this issue. At the Suwon Maegyo Station Pellucid Apartments (2,178 households), potential residents brought up concerns regarding final payment loans during a public discussion on real estate policy on the 23rd of last month, following which President Lee Jae Myung instructed for solutions. Five major banks are now working to provide a combined total of 500 billion South Korean won, guided by the government. Recently, an apartment in Asan, South Chungcheong Province, had its local government encourage banks to raise loan limits after facing delays in loan distribution.
A representative from a commercial bank stated, “Banks are not opposed to offering loans.” With more than four months remaining until the end of the year, expanding final payment loans would necessitate cutting back on other household loans. A high-ranking official from a commercial bank remarked, “Without exceptional actions, harm to actual borrowers will increase, and supply may be negatively impacted.”
With large-scale move-ins continuing this month at Pyeongtaek Brain City Daegang Rocheviang Moa Elga (1,700 households) in Gyeonggi Province and next month at Changwon Central IPark (1,509 households), even smaller apartment complexes are expressing complaints: “We are being overlooked and excluded from loans simply because our size is small.”
jasdooit 
Leave a comment