FSS evaluates mortgages

The Financial Services Commission said on Thursday that it held a closed-door meeting with officials from the Financial Supervisory Service, Bank of Korea and state research institutions to evaluate the country’s mortgage levels and housing market.

The officials also met to resolve a misunderstanding that the country’s financial authority has been toughening its rules on loans amid a housing oversupply and high household debt.

The FSC reiterated its stance that it has not enforced any regulations particularly on bank loans for construction companies, tenants expected to move into new apartments and owners of apartments that are expected to be redeveloped.

This so-called “group lending” reached 112.8 trillion won ($96.4 billion), and has further spurred mortgages, which reached 482.5 trillion won as of the end of last month.

The FSS said the country’s banks would have to independently assess mortgages through risk management and credit qualification analyses.

(hkp@heraldcorp.com)