The South Korean government is taking action to regulate loans for multiple homeowners amid rising concerns over high loan balances. According to a report from the Financial Supervisory Service, as of the end of January, there were over 604,000 loans amounting to approximately 102.9 trillion won taken out by individuals owning two or more properties. The report highlights that the concentration of these loans is particularly significant in the Seoul and Gyeonggi regions, where the loan balances reached a staggering 51.9 trillion won, accounting for about 50.4% of the total figure.

In terms of specific regions, the data indicates that Seoul's loan balance has seen a 21% increase from the previous year, now standing at 20 trillion won. The district of Gangdong occupies the highest loan amount within the city, followed by Gangnam and Seocho with significant figures as well. Most of these loans are secured against apartments, evidencing the popularity of property as collateral among homeowners, with apartment loans constituting about 89.3% of the total loan balance.

As the situation unfolds, financial authorities are considering measures to collect on housing loans given to homeowners who utilize the properties for rental purposes. Though the restrictions being developed focus on substantial amounts associated with pure home purchase loans, the complexities of the loan landscape, which includes types such as Jeonse and relocation loans, suggest that the impact of these measures will be limited, targeting only a fraction of the overall loans issued. This highlights the challenges the government faces in navigating the housing market while attempting to balance homeowner liabilities and market supply.