South Korea

빌리려면 지금이 더 낫다?…내년 주담대 더 힘들어질듯

Newsis | Local Language | News | Oct. 17, 2025 | UndeterminedReal Estate

Starting October 15, 2025, the South Korean government has tightened mortgage loan limits in the metropolitan and regulated areas. For homes priced over 1.5 billion won up to 2.5 billion won, the loan limit is set at 400 million won, while for homes priced above 2.5 billion won, it is reduced to 200 million won. Additionally, the interest rate floor used for the Debt Service-to-Income Ratio (DSR) stress test has increased from 1.5% to 3%, effectively lowering loan caps for borrowers based on their income and loan conditions.

The Loan-to-Value (LTV) ratio for mortgages in regulated areas will be decreased from 70% to 40%, and DSR regulations will now apply to jeonse (key money) loans for homeowners with one property. These regulatory changes are expected to significantly discourage demand for mortgage-based home purchases and have already contributed to a marked slowdown in household loan growth. As of the end of September 2025, the outstanding household loans at the five largest banks increased by only 1.2 trillion won, the smallest uptick in eight months.

Furthermore, banks have largely met or surpassed their household loan growth targets for the year, with Shinhan Bank and Nonghyup Bank exceeding theirs. The government will bring forward the implementation of raising the lower bound of risk weights for bank mortgage loans from 15% to 20%, effective January 1, 2026, instead of April. This move is projected to reduce new mortgage supply by approximately 27 trillion won. The Financial Services Commission will closely monitor market trends and may introduce additional measures if the housing market remains unstable or balloon effects emerge.

日다카이치, 제2야당 유신회와 손잡을듯…"총리 선출 가능성 높아져"

Newsis | Local Language | News | Oct. 17, 2025 | UndeterminedPolitics and Elections

Sanae Takaichi, president of Japan's Liberal Democratic Party (LDP), has increased her chances of becoming prime minister by initiating policy consultations with Nippon Ishin no Kai, the country's second-largest opposition party. Takaichi and Ishin leader Hirofumi Yoshimura agreed on October 15 to start talks from October 16, including potential coalition formation. Ishin, a right-leaning party based in the Kansai region, holds 35 seats in the House of Representatives, and its support could help Takaichi overcome the LDP's current shortfall of 37 seats, potentially securing a majority.

Takaichi's efforts arise after her former coalition partner, Komeito, announced its withdrawal on October 10, jeopardizing her bid for prime minister. Takaichi requested Ishin's support in the upcoming prime minister designation vote on October 21 and emphasized policy alignment and joint administration responsibilities. Yoshimura expressed openness to cooperation, indicating that formal support would depend on the outcome of ongoing policy consultations.

Takaichi has also sought cooperation from the largest opposition Constitutional Democratic Party (CDP) and the third opposition Democratic Party for the People (DPP). However, DPP leader Yuichiro Tamaki stressed the need for trust-building before considering a coalition, signaling reluctance to back Takaichi immediately. Meanwhile, the CDP aims to form a three-party alliance with Ishin and the DPP to elect a non-LDP prime minister, even considering supporting Tamaki despite his party's smaller size. However, ideological differences between the CDP and DPP, particularly regarding nuclear power and security legislation, remain unresolved, complicating coalition efforts among opposition parties.

Yonhap | English | News | Oct. 17, 2025 | Accidents

South Korea's foreign ministry has issued a Level 4 travel ban, the highest on its travel warning scale, on Cambodia's Bokor Mountain region in Kampot Province, as well as the cities of Bavet and Poipet. This action follows escalating concerns over a job scam crisis involving the trafficking and torture of South Korean nationals in these areas.

Additionally, the ministry raised the travel warning for South Koreans in Cambodia's Sihanoukville Province, urging them to leave due to the region's concentration of criminal groups. The decision comes after reports of increasing abductions and detentions of South Koreans who fell victim to job scams, including a recent case where a university student was found dead near Bokor Mountain after being tortured and detained, causing public outrage.

In response to the crisis, South Korea has set up a task force at its embassy in Cambodia and is actively working to repatriate approximately 60 detained nationals. Some detained South Koreans have already returned amid the job scam crackdown.