Financial authorities in South Korea have uncovered significant illegal use of business loans for purchasing residential properties, prompting focused inspections in the Gangnam area.
In South Korea, a substantial number of individuals have been found illegally utilizing business loans to purchase residential properties, amounting to a total of 58.8 billion won. The Financial Supervisory Service (FSS) announced this discovery during a board meeting headed by Director Lee Chan-jin, with inspections concentrating on areas of heightened speculative demand, particularly the three districts of Gangnam (Gangnam, Seocho, and Songpa) in Seoul. The analysis revealed that out of approximately 20,000 business loans issued in the first half of last year, 127 cases were identified where the loan amounts were diverted for property purchases. As a remedial measure, 91 loans amounting to 464 billion won have already been recovered, with plans to pursue further recoveries from the remaining violations.
