KB Kookmin Bank halves mortgage loan ceiling to 300 million won, prompting criticism and housing‑market worries

KB Kookmin Bank reduced its maximum housing‑mortgage loan amount from 600 million won to 300 million won, a move that other Korean banks are expected to emulate. The cut has been linked to stricter loan‑to‑value limits imposed by the government on high‑price homes.

Opposition lawmaker Ahn Cheol‑soo condemned the bank, calling it a “betrayer of the people” and suggesting it change its name to “JM Jae‑myung Bank.” He argued the policy harms low‑ and middle‑income homebuyers and urged the government to separate first‑time, non‑owner borrowers from aggregate loan‑cap regulations.

Analysts warn the tighter credit will push many would‑be buyers into the rental market, boosting jeonse (lease‑deposit) prices. Seoul’s jeonse listings fell 17.7% year‑on‑year, while the demand index reached a five‑year high. Experts predict a shift toward “month‑to‑month” rentals as supply tightens.