13 Korean banks made 149 household loan restrictions since early last year
Version 2: Additional outlets repeated the same Financial Supervisory Service tally and the lawmaker's criticism, one report described the period as 20 months, and a further report said banks are keeping credit-loan and overdraft limits in place even as household mortgage rules are eased.
In short
Financial Supervisory Service data obtained by the office of Democratic Party lawmaker Han Min-soo shows 13 Korean banks made 149 household loan restriction measures between January last year and Aug 11 this year, counted by product and application channel. Hana Bank accounted for the most at 29, followed by KB Kookmin and NH Nonghyup with 25 each. The outlets report that the frequent changes make borrowing unpredictable and hit genuine borrowers hardest, and Korea Economic Daily reported that credit-loan and overdraft limits remain in place even as mortgage rules ease.
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Thirteen Korean banks made 149 household loan restriction measures between January last year and Aug 11 this year, counted by product and application channel, according to Financial Supervisory Service data submitted to the office of Democratic Party lawmaker Han Min-soo. Yonhap, Seoul Economic Daily, Dong-A Ilbo and Kyunghyang Shinmun reported the same figure. The outlets describe the period differently: Yonhap's headline refers to roughly a year, Seoul Economic Daily says one year and seven months, and Dong-A Ilbo says one year and eight months. [ 1 , 3 , 5 , 7 ]
Hana Bank recorded the most restrictions at 29. Yonhap and Kyunghyang Shinmun reported that Hana stopped selling the mortgage insurance products MCI and MCG on July 1, temporarily suspended new applications for non-face-to-face-only mortgages on Aug 7 and for variable-rate mortgages on Aug 12, tightened the standard for reducing unused credit lines on June 18, limited daily new non-face-to-face credit loans from July 21 and capped its maximum credit line at 50 million won on Aug 11. KB Kookmin Bank, with 25 restrictions, halted MCI and MCG sign-ups from June 26, limited refinancing of living-stability-purpose mortgages, capped per-case loans at 100 million won and credit lines at 50 million won from June 16, and set a 300 million won ceiling on mortgage loans on July 10. NH Nonghyup also recorded 25, followed by Busan Bank with 12 and Shinhan Bank with 10, with smaller counts at other banks. [ 1 , 3 , 7 ]
Critics cited in the reports say the changes have been too frequent. Yonhap said the practice reduces the predictability of lending, leaves genuine borrowers to absorb the damage and, with expanded exemptions such as group loans, weakens the regulation's effectiveness. Han said “borrowers who need funds were hit hardest as banks repeatedly cut limits and suspended non-face-to-face products” and urged financial authorities to present clear and consistent standards so that loans for genuine users can be supplied steadily. [ 1 , 3 , 7 ]
Newsis reported that the five major banks' household loan balance stood at 775.9563 trillion won as of the 8th, up 99.55 billion won from 774.9608 trillion won at the end of the previous month, a rise the outlet linked to borrowers seeking funds before lending conditions tightened further. Korea Economic Daily reported that major banks are keeping credit-loan and overdraft limit restrictions in place despite an easing trend in household loan rules, citing financial authorities' household debt management stance and concerns about a recurrence of debt-funded investing. [ 4 , 6 ]
The reports do not include any response from the Financial Supervisory Service or the government to the criticism, and they do not quantify the effect on individual borrowers. [ 1 , 2 , 3 , 4 , 5 , 6 , 7 ]
Why it matters
The tally points to a system in which individual banks adjust lending conditions often rather than by a fixed standard, which the reports say reduces predictability for people planning to borrow. That leaves room for the financial authorities to face pressure to publish clearer, more consistent lending rules, as the lawmaker quoted in the reports demands. One outlet's report that credit-loan limits are being kept in place despite an easing trend suggests any relief may arrive unevenly across loan types.
Key facts
- Thirteen banks made 149 household loan restriction measures, counted by product and application channel, between January last year and Aug 11 this year, according to Financial Supervisory Service data submitted to Rep. Han Min-soo's office. [ 1 , 3 , 5 , 7 ]
- Hana Bank had the most restrictions at 29, followed by KB Kookmin and NH Nonghyup at 25 each, Busan Bank at 12 and Shinhan Bank at 10. [ 1 , 3 , 7 ]
- Measures included suspending sign-ups for the mortgage insurance products MCI and MCG, halting non-face-to-face mortgage applications and cutting credit-line caps. [ 1 , 3 , 5 , 7 ]
- Hana Bank stopped selling MCI and MCG on July 1, temporarily halted new applications for non-face-to-face-only mortgages on Aug 7 and for variable-rate mortgages on Aug 12, and capped its maximum credit line at 50 million won on Aug 11. [ 1 , 7 ]
- KB Kookmin Bank limited per-case loans to 100 million won and credit lines to 50 million won from June 16, and capped mortgage loans at 300 million won on July 10. [ 1 , 7 ]
- Newsis reported that the five major banks' household loan balance stood at 775.9563 trillion won as of the 8th, up 99.55 billion won from 774.9608 trillion won at the end of the previous month. [ 4 ]
- Rep. Han said borrowers who need funds were hit hardest and urged financial authorities to present clear, consistent standards so loans for genuine users can be supplied steadily. [ 1 , 3 , 7 ]
- Korea Economic Daily reported that major banks are keeping credit-loan and overdraft limit restrictions in place despite an easing trend in household loan rules. [ 6 ]
Confirmed by several sources
- Financial Supervisory Service data obtained by Rep. Han Min-soo's office shows 13 banks made a total of 149 household loan restriction measures between January last year and Aug 11 this year. [ 1 , 3 , 5 , 7 ]
- Hana Bank recorded the most restrictions at 29, with KB Kookmin and NH Nonghyup at 25 each. [ 1 , 3 , 7 ]
- Frequently used measures included suspending MCI and MCG mortgage insurance sign-ups and halting non-face-to-face mortgage applications. [ 1 , 3 , 5 , 7 ]
- The reports say the frequent changes to banks' lending criteria have reduced predictability and hurt genuine borrowers. [ 1 , 2 , 3 , 5 , 7 ]
- Rep. Han called on financial authorities to provide clear and consistent standards for lending to genuine users. [ 1 , 3 , 7 ]
Still unclear
- Whether the total number of restrictions was 149 or about 150. Yonhap, Seoul Economic Daily, Dong-A Ilbo and Kyunghyang Shinmun give 149, while Chosun Ilbo says the figure approached 150 and the headlines of Yonhap, Seoul Economic Daily, Newsis and Dong-A Ilbo say 150 or close to it.
- The length of the period covered. Yonhap's headline refers to roughly a year, Seoul Economic Daily says one year and seven months and Dong-A Ilbo says one year and eight months, although the documents agree the count runs from January last year to Aug 11 this year.
- The reference date of Newsis's household loan balance figure of 775.9563 trillion won, described only as being as of the 8th. The article does not state which month the 8th refers to, and the accompanying photo is dated 2026.07.12.
- Whether financial authorities or the government have responded to the criticism. No document contains a response from the Financial Supervisory Service or the government.
- The scale of the actual harm to individual borrowers. The documents describe confusion and damage in general terms without giving figures.
- Whether or when banks will lift credit-loan and overdraft limits. Korea Economic Daily's report is behind a paywall, so only its lead stating that the limits remain in place is readable.
What local media are saying
Timeline, local time
- Yonhap publishes the Financial Supervisory Service tally showing 149 household loan restriction measures by 13 banks between January last year and Aug 11 this year. [ 1 ]
- Chosun Ilbo reports that self-imposed restrictions approached 150 over roughly a year. [ 2 ]
- Seoul Economic Daily reports the same 149 measures, the bank rankings and the lawmaker's comments. [ 3 ]
- Newsis reports on the tightened lending criteria and the rise in household loan balances at the five major banks. [ 4 ]
- Dong-A Ilbo reports 149 measures over one year and eight months and the impact on borrowers. [ 5 ]
- Korea Economic Daily reports that banks are keeping credit-loan and overdraft limits in place despite an easing trend. [ 6 ]
- Kyunghyang Shinmun reports the 149 measures, per-bank counts and Han's call for consistent standards. [ 7 ]