(C) TOPI

SEOUL — Amid a persistent rise in real estate prices, the total outstanding loan balance held by multi-homeowners in South Korea has surpassed the 100 trillion won mark, with more than half of the debt concentrated in the Seoul metropolitan area.

According to data submitted by the Financial Supervisory Service to Representative Kang Min-kuk’s office on Thursday, the total loan balance for multi-homeowners—including mortgage, jeonse (lump-sum deposit), and intermediate payment loans—stood at 102.9 trillion won as of the end of January 2026.

Geographic Concentration and Rapid Growth
The data reveals a significant regional disparity. Loan balances in Seoul (20 trillion won) and Gyeonggi Province (31.9 trillion won) combined for 51.9 trillion won, accounting for 50.4% of the national total. Notably, Seoul's balance surged by 21% in just over a year, rising from 16.5 trillion won at the end of 2024.

Within Seoul, the "Gangnam Trio" and emerging high-demand districts saw the highest concentrations:

-Gangdong-gu: 1.9 trillion won
-Gangnam-gu: 1.7 trillion won
-Seocho-gu & Seongdong-gu: 1.3 trillion won each

Loan Structure: Dominance of Apartments and Installments
The vast majority of these loans are tied to high-value assets. Apartment-backed mortgages accounted for 91.9 trillion won (89.3%), while non-apartment collateral made up only 10.7%.

In terms of repayment structure, 93% (95.7 trillion won) of the loans are under a principal and interest installment repayment plan, while bullet loans (interest-only until maturity) represented a mere 7%.

Policy Debate: Market Stability vs. Rental Pressure
Financial authorities are currently reviewing measures to encourage the release of more housing supply into the market by potentially recovering certain types of multi-homeowner mortgages. However, experts and policymakers remain divided on the potential impact.

Representative Kang Min-kuk expressed caution, stating, "Given that most of these loans are already structured for installment repayment, we must carefully weigh the regulatory utility. Excessive pressure could inadvertently burden the rental market by driving up costs for non-homeowners."

Conversely, some proponents of stricter regulation argue that forcing multi-homeowners to sell will lower prices and allow renters to transition into homeowners, ultimately stabilizing both the sales and rental markets in the long run.