FSC Hosts Real Estate Finance Policy Debate... Household Loans for Jeonse Deposits Discussed

The Financial Services Commission (FSC) convened a real estate finance policy debate attended by experts from various sectors and citizens, where comprehensive real estate financial policies, including Jeonse loans and aggregate household loan regulations, were discussed.

Dr. Kim Mi-ru of the Korea Development Institute (KDI) proposed that Jeonse loans with guarantees be limited to support only vulnerable classes, citing the burden of rising prices. Park Sun-young, a professor at Dongguk University, argued that for youth housing welfare, supply and fiscal policies—such as special supply for young people and the expansion of public housing—are needed rather than loan relaxation. Seo Young-soo, managing director at SK Securities, pointed out that aggregate loan regulations cannot block private financing or inter-family lending, suggesting institutional improvements.

Regarding loans for relocation expenses in urban redevelopment projects, conflicting views emerged, with calls for regulatory exemptions clashing with opposition to expanding loan sizes.

The real estate policy debate series will conclude with a session on taxation hosted by the Ministry of Economy and Finance. On the 23rd, future directions for real estate policy will be discussed during a major debate presided over by President Lee Jae-myung.