(농협) Nonghyup Bank will temporarily halt mortgage loans effective as of August 24th as financial authorities are working to curb household debt. Other mortgage lenders are also expected to jump on the bandwagon soon and some are expressing concerns that this could drive people into the arms of loan sharks.
Mike Laidman reports.

[Slug] NH Nonghyup Bank halts mortgages thru to November

NH (농협) Nonghyup Bank will temporarily halt its home-backed loans from tomorrow (Aug.24) through to the end of November.
Mortgage renewals will be suspended as well.

[Slug] Mortgages, house rental loans, group loans to be halted

And it's not only normal mortgage loans, but also loans for house rentals, app-based instant mortgages, and group loans that will be stopped.
However, loans for living expenses taken in collateral with real estate are not included.
This kind of suspension in sales of major loans is an unprecedented measure.


[Slug] Financial authorities request banks tighten household loans

Financial authorities have requested that banks tighten up on their loans to try and curb the country's snowballing household debt.
According to financial authorities, the amount of loans sold by NH (농협) Nonghyup accounts for 20 percent of the total amount of South Korea's household debt.

[Slug] Other banks expected to take same measures

Industry watchers project that other banks will implement many of the same measures soon, as the risk of losses increases from growing emergency loans in response to the pandemic.

[Slug] Household debts exceeds 17 trillion won

As of this April, household loans exceeded 17 trillion won in Jeju.
The rate for new business loans is decreasing, while the rate for household debts is growing.
Stock purchases made in public offerings are contributing to the growth in household debts.

[Slug] People would be forced to pay higher interest rates

This unprecedented move by NH Nonghyup Bank, which is one of the nation's five major commercial lenders, could possibly drive people to get money from institutions that are not banks, which offer loans at higher interest rates, or even into the arms of loan sharks.

[Reporter] Mike Laidman
[Camera] Ko Moon-su

Now, people are paying a lot of attention to the bank's measure, and gauging whether it will restrain fast-growing household debts, or in fact be a detriment to household economies nationwide.

Mike Laidman, KCTV