Reported 12 months ago
The Financial Supervisory Commission (FSC) Chairperson revealed concerns about potential limitations on capital flow in the real estate market on July 3, 2024. The FSC is looking into the 'but clauses' within Section 72-2 of the Banking Act, which allows exclusion of many real estate loans from the 30% limit. This has been criticized as 'backdoor clauses' by lawmakers, and the FSC aims to scrutinize and redefine these exclusions within a month. The FSC plans to review if loans for industrial buildings and related operational turnover funds can be exempted, focusing on definitions and assessments to prevent misuse of these exclusions and maintain fair lending practices.
Source: YAHOO