[Exclusive] 6·27 Loan Regulation Also Includes Population Decline Areas... "Controversy Over Extinction Crisis"

[Financial News] It has been confirmed that the government's '6·27 Loan Regulation' targets the entire Seoul metropolitan area, including 'population decline areas' at risk of extinction. There is even criticism of a 'policy mismatch' as regions receiving administrative and financial support to increase population inflow are also affected by the regulation.
According to the industry on the 24th, the Ministry of the Interior and Safety has designated four areas in the metropolitan area as population decline areas: Gapyeong-gun and Yeoncheon-gun in Gyeonggi, and Ganghwa-gun and Ongjin-gun in Incheon. Additionally, three areas, Dong-gu in Incheon, Dongducheon-si, and Pocheon-si in Gyeonggi, are designated as population concern areas. In the metropolitan area, a total of seven places (four decline areas and three concern areas) are experiencing or are at risk of population decline.
The Ministry of the Interior and Safety is designating population decline and concern areas to provide various financial and administrative support to save regions at risk of extinction. The problem is that the '6·27 Loan Regulation' indiscriminately affects these population crisis areas.
The main point of this measure is to completely block the demand for purchasing additional housing using mortgage loans in the metropolitan area. Housing refers to all types of residences, including apartments, 'multi-family, row houses, and single-family (including multi-unit)'.
Specifically, those who own two or more houses are prohibited from taking out mortgage loans, and those with one house cannot receive any loans if they do not dispose of their existing house within six months when purchasing additional housing. The same applies to the move-in obligation (within six months), preventing even second house demand from entering.
These areas also have a significant number of unsold apartments. As of the end of May, Gapyeong-gun has 424 unsold units. Yeoncheon-gun has 40 units, all of which are chronic unsold properties. A senior industry official said, "It's like applying the same regulation to Gangnam-gu, where the population continues to influx, and Gapyeong-gun, which is at risk of extinction," adding, "Gangnam will continue to attract people despite the regulation, but areas already lacking people will inevitably suffer a greater blow." He continued, "By tying up the entire metropolitan area, it seems that the financial authorities did not consider the population decline areas, and it also conflicts with government policy."







ljb@fnnews.com Lee Jong-bae Choi Ah-young Reporter