ATM machines at a commercial bank in Seoul on the 19th. [Yonhap News] 

In the first half of this year, "other loans" at the five major commercial banks (KB Kookmin, Shinhan, Hana, Woori, and NH NongHyup) surged, exceeding their target by nearly 2.4 trillion won.

As the "bit-tu" (investing with borrowed money) craze led to an increase in credit and other types of loans, banks have begun tightening mortgage lending starting in July to manage their portfolios.

According to data submitted by the Financial Supervisory Service (FSS) to Rep. Lee Yang-soo of the People Power Party, a member of the National Assembly's National Policy Committee, on the 22nd, other loans at the five major commercial banks increased by 3.4658 trillion won as of the end of June.

This figure exceeds the combined target for other loans across these banks (1.0924 trillion won) by approximately 2.4 trillion won, which is about 3.2 times the original goal.

Woori Bank issued 1.0696 trillion won in such loans, 8.2 times its target (131 billion won), while Hana Bank issued 759.9 billion won, 8.9 times its target (85.6 billion won).

Shinhan Bank issued 708.8 billion won, 6.7 times its target of 105.8 billion won, and Kookmin Bank also provided 1.18 trillion won, roughly twice its target of 595 billion won.

However, NongHyup Bank, which had a target of increasing these loans by 175 billion won, saw a decrease of 252.5 billion won.

Overall, mortgage lending maintained a downward trend.

Kookmin Bank reduced mortgage loans by 1.3149 trillion won by the end of June, nearing its target reduction (1.4096 trillion won), while Woori Bank tightened management to cut 502.9 billion won, significantly exceeding its reduction target (91.9 billion won). Shinhan Bank and Hana Bank also reduced their mortgage portfolios by 696.5 billion won and 226.9 billion won respectively, though they fell short of their specific reduction targets.

Conversely, NongHyup Bank saw its mortgage loans increase by 1.6954 trillion won, far exceeding its target (260 billion won), raising a red flag for its portfolio management.

As a result, it is the only one among the five banks to have already exceeded its annual target for total household loans (870 billion won). Other banks also surpassed their respective first-half targets.

With household loans exceeding targets due to a sharp rise in the use of overdraft facilities and other credit, banks appear to be focusing their tightening efforts on mortgages, which are relatively easier to control.

KB Kookmin Bank preemptively lowered its mortgage loan ceiling from 600 million won to 300 million won earlier this month, and other major banks are taking measures such as temporarily suspending loan applications through loan agencies or restricting mortgage insurance subscriptions.

An official from the financial authorities stated, "While it is difficult to control the limits on credit loans like overdrafts, mortgages are easier to manage and involve larger volumes, which is why banks seem to be focusing on them."

As this "mortgage tightening" spreads across the banking sector, demands from genuine homebuyers for regulatory relief are growing.

However, the financial authorities maintain their stance of strictly managing the total volume of household loans.

Shin Jin-chang, Secretary-General of the Financial Services Commission, said in a pre-briefing on work reports, "There are concerns that relaxing the household debt management stance in the current situation could stimulate the real estate market," adding, "We are not currently considering easing the 1.5% target for total household loan growth."

Nevertheless, the possibility of limited relief for certain homebuyers, such as young people, remains open.

President Lee Jae-myung also remarked at a cabinet meeting on the same day, "Normalization of the real estate issue is necessary to enable productive reinvestment of resources and restore social dynamism," adding, "Along with rapid real estate supply measures, we will meticulously prepare support measures for genuine homebuyers that fit the current reality."

Rep. Lee Yang-soo pointed out, "As banks tighten mortgages further in line with the authorities' regulations, funding for ordinary, genuine homebuyers is effectively being blocked. The financial authorities must move away from a one-size-fits-all regulatory approach and prepare supplementary measures to minimize harm to genuine homebuyers."