The household loan increase for the four major banks this year has exceeded the target by an average of 32.7%. Financial Sector · Yonhap News

The increase in household loans (excluding policy loans) for the four major banks as of November 20 has exceeded the total target by an average of 32.7% this year.

Consequently, the household loan windows of the four major commercial banks are effectively "shut down."

According to the financial sector on the 23rd, the total increase in household loans (excluding policy loans) from January 1st to the 20th of this month at the four major banks (KB Kookmin, Shinhan, Hana, Woori) was 7.8953 trillion won.

This figure is 32.7% higher than the annual increase limit target (5.9493 trillion won) that these banks had originally submitted to the financial authorities.

Looking at each bank, all four banks have exceeded their individual targets. The excess rate ranges from a low of 9.3% to a high of 59.5%, depending on the bank.

In response, KB Kookmin Bank has suspended applications for mortgage loans intended for home purchases that were planned for this year, and has halted sales of inter-bank loan refinancing (mortgage, jeonse, and credit loans) and some non-face-to-face credit loan products.

Hana Bank will temporarily suspend new mortgage and jeonse loan applications through both branch and non-face-to-face channels starting from the 25th.

Woori Bank has already raised the threshold for new loans by limiting monthly mortgage and jeonse loan amounts at branches to 1 billion won and has also suspended sales of non-face-to-face household loan products.

Shinhan Bank has stopped accepting new household loan applications through loan agents. While loans through the bank's own channels and non-face-to-face loans are being maintained, the bank stated that additional measures may be considered due to concentrated loan demand.

Real demanders are in distress as news of the deepening "loan cliff" phenomenon until the end of the year spreads.

A consumer who had planned to buy a home next year expressed concern, saying, "If housing prices in the Seoul metropolitan area do not stabilize, doesn't this mean that even if new total amount targets are set early next year, the loan thresholds may not easily be lowered?"

An official from a commercial bank stated, "We are experiencing difficulties in managing the total amount of household loans due to the continued issuance of mortgage loans as housing transactions increased before the 10/15 measures are executed with a several-month time lag, and also due to high demand for credit loans for investment purposes such as stocks and cryptocurrencies."

Hanmiilbo Editorial Department