South Korean housing loan and real estate policy updates

South Korea has implemented several adjustments to housing loan eligibility and real estate regulations. Initially, the Korea Housing Finance Corporation updated the Bogeumjari Loan criteria to reduce the ‘marriage penalty’ for dual-income newlyweds. Under these rules, couples can qualify even if their combined income exceeds previous limits, provided at least one spouse earns 70 million won or less. However, the maximum property price limit for these loans remains at 600 million won.

Subsequent updates to the Newborn Special Loan expanded the income threshold for dual-income couples to 200 million won for new home purchases, though the limit for refinancing existing debt remains at 130 million won. While the income bracket has expanded, the lowest 1% interest rate tier is restricted to households earning 85 million won or less; those in higher brackets face rates between 3.6% and 4.3%.

In the brokerage sector, clarifications were issued regarding fee structures and taxes. Official brokerage fee schedules are defined as maximum limits rather than fixed prices. Additionally, regulations specify that simplified taxpayers should charge approximately 4% Value-Added Tax (VAT), whereas charging the standard 10% VAT as a simplified taxpayer is considered a violation of excess fee prohibitions.