South Korea to Lower Jeonse Loan Guarantee Ratio to 70% on July 30

According to Seoul Economic Daily, South Korea's Financial Services Commission will announce housing finance measures on July 30, lowering the public guarantee ratio for jeonse loans (long-term deposits on rental properties) from 80% to 70% in the capital region and regulated areas. Group loans for redevelopment relocation costs will be treated as exceptions to overall household lending growth targets of 1.5% annually.

Capital region redevelopment projects show significant housing supply potential: 790 confirmed projects in Seoul and Gyeonggi Province are projected to add a net 232,316 housing units upon completion, with Seoul alone contributing 126,152 units and Gyeonggi contributing 106,164 units.