News / Korea / yonhap_finance
Financial Services Commission Clarifies LTV Calculation Basis for Relocation Loans
Finance · Major Banks · yonhap_finance · 2026-08-24
FSC Chairman Lee Eok-won confirmed that member pre-sale prices will serve as the collateral valuation standard for relocation loans to ensure market clarity.
What Happened
Relocation Loan LTV Standards: FSC Chairman Lee Eok-won announced that the 'member pre-sale price' will be the official benchmark for calculating the Loan-to-Value (LTV) ratio for relocation loans. This decision aims to eliminate ambiguity in the field by utilizing the valuation established after the management and disposal plan is approved.
Household Debt Management: Regarding the upward adjustment of household loan growth targets, Chairman Lee explained that the policy reflects actual market demand driven by higher economic growth and increased housing transaction volumes. He emphasized that this is a data-driven adjustment rather than an indiscriminate expansion of credit.
Clarification on Youth Loan Products: Addressing concerns regarding the 'Youth Future Bogeumjari Loan,' Lee clarified that the product serves as an additional option for young buyers rather than a replacement for existing first-time homebuyer benefits. He reassured that utilizing this product does not disqualify applicants from other primary benefits.
Leveraged ETF Oversight: In response to questions about single-stock leveraged ETFs, the Chairman noted that while a formal regulatory impact analysis was not required, the authorities conducted necessary stress tests and followed all mandatory evaluation procedures prior to the product's introduction.