Government Moves to Tighten Loan Extensions for Multi‑Home Owners The Financial Services Commission is reviewing measures to curb loan‑extension practices for owners of multiple homes in regulated areas of greater Seoul, a step echoed by President Lee Jae‑Myung’s February 20 directive to the Cabinet to examine the same rules[2]. The review follows criticism that existing owners enjoy lenient refinancing while new buyers face strict mortgage caps[2]. A senior financial official indicated that, absent special cases, loan‑maturity extensions for multiple‑home owners will be prohibited in principle[1].

Capital‑Gains Tax Exemption Set to End in May The government confirmed that the heavy capital‑gains tax exemption for owners of multiple homes will expire in May, a deadline that intensifies pressure to tighten loan controls[1]. The impending loss of the exemption is expected to reduce speculative buying and align tax treatment with broader market‑cooling policies[1]. Officials cite the exemption’s end as a catalyst for the current regulatory push[1].

Senior Official Signals Principle Ban on Extensions Lee argued that extending or refinancing a loan after maturity is “not fundamentally different from new loans,” urging that extensions for existing owners be subject to the same restrictions as new purchases[2]. He suggested a phased rollout to avoid market shock, indicating flexibility in implementation timing[2]. The senior official’s stance aligns with Lee’s view, reinforcing the likelihood of a de‑facto ban on extensions[1].

Banks and Cooperatives to Discuss Revised Practices The commission will convene the nation’s five largest banks and financial cooperatives on Tuesday to discuss revamping loan‑extension practices for multiple‑home owners[1]. Despite existing mortgage caps, some owners have extended loans through refinancing, raising fairness concerns among regulators[1]. The meeting aims to align lender policies with the forthcoming regulatory framework and the May tax‑exemption deadline[1].