South Korea Tightens Mortgage Caps to KRW 300 Million Limit, Requiring KRW 1 Billion Personal Capital for Seoul Apartments in July

According to KB Kookmin Bank and Shinhan Bank announcements, South Korea's major banks tightened mortgage lending limits as of early July 2026. KB Kookmin capped mortgage loans at KRW 300 million, while Shinhan halted MCG and MCI products, effectively reducing limits by KRW 50 million. With Seoul apartment average prices around KRW 1.3 billion, buyers now need approximately KRW 1 billion in personal capital to purchase property in the capital.

The restrictions triggered spillover effects across surrounding regions. Suwon's Youngtong district saw apartment price gains nearly triple within one week, rising from 0.41% to 1.19%, according to real estate analysts. Property prices in adjacent non-regulated areas also accelerated amid expectations of semiconductor industry growth in southern Gyeonggi Province.