As the government touts “supply at all costs,” rumors of repeated mortgage loan cuts circulate... FSC: “False information; investigation requested”

[Financial News] The Financial Services Commission (FSC) said on the 6th that a rumor of unknown origin claiming an announcement was planned for mid-November to reduce mortgage loan limits was false. It added that it would request an investigation into suspected obstruction of official duties by deceptive means, among other offenses. The FSC has also requested an investigation into a rumor circulated last month claiming that mortgages would be completely banned for homes priced at 1.5 billion won or more, calling it the spread of false information.
That day, an online document circulated titled “Draft Announcement of Additional Measures to Stabilize the Housing Market (Planned for Mid-November).” It claimed that some areas of Gyeonggi Province would be newly designated as land transaction permit zones and regulated areas, and that lending rules for first-time homebuyers and guarantee requirements for jeonse loans would be tightened. The document listed specific areas, loan limits by home price, and jeonse loan guarantee ratios based on homeownership status. For example, it said that for homes priced above 2.5 billion won, the existing loan cap of up to 200 million won would be eliminated and lending prohibited altogether; for homes priced above 1.5 billion won and at or below 2.5 billion won, the cap would be halved from 400 million won to 200 million won.
For homes in the Seoul metropolitan area and regulated areas, the current limits on mortgages for home purchases are up to 600 million won for homes with market prices of 1.5 billion won or less, up to 400 million won for homes priced above 1.5 billion won and at or below 2.5 billion won, and up to 200 million won for homes priced above 2.5 billion won. The circulated document kept these price brackets unchanged and claimed that the loan limit in each bracket would be cut by 200 million won. It also included lending restrictions for first-time homebuyers.

A post titled “Additional Mortgage Regulations in the Works” also circulated on the 20th of last month. It said mortgages would be banned outright for homes priced at 1.5 billion won or more, and that loan limits for homes in lower price brackets would be reduced to between 200 million and 400 million won. The FSC issued a statement clarifying reports at the time and said the post’s claims were baseless.
The FSC has requested investigations into all instances of repeated false information being spread. An FSC official explained, “We have already requested investigations into posts with similar content in February, June and October on suspicion of obstruction of official duties by deceptive means, among other offenses.”
The Ministry of Land, Infrastructure and Transport also said that day, “The information about real estate measures currently circulating online is not true.” It added, “Investigations are underway after we requested investigations into similar posts in February, June and October this year on suspicion of obstruction of official duties by deceptive means, among other offenses.”
The government believes it is time to devote all its efforts to expanding supply to stabilize housing prices. This is the so-called “supply at all costs” stance.
President Lee Jae Myung wrote on X (formerly Twitter) on the 3rd, “The myth that real estate never loses is now due to be shattered, and we must make sure it is.” He stressed, “With permits and approvals returning to normal under this administration, the supply cliff will begin to ease around 2028. Our government will continue to ‘supply at all costs.’” On the 20th of last month, President Lee also visited the Gyeyang area in Incheon, which is being developed as a 3rd Generation New Town, and urged, “This is an emergency. We must bring supply forward as much as possible.”

[email protected] Jo Eun-hyo Reporter