What housing finance support is South Korea adding for young homebuyers and first-time buyers?

The FSC is introducing longer-term mortgage financing for young people and a new guarantee product for jeonse deposit refunds. It also plans to let banks use expected future income more broadly when calculating debt-service ratios, which could raise borrowing limits for younger workers.

How will the government handle debt controls while expanding housing loans?

The government will keep existing loan-to-value and debt-service ratio rules in place. At the same time, it wants banks to continue lending for genuine home purchases and new housing supply without being overly restricted by household lending quotas.

What changes are planned for newlyweds under policy lending rules?

The government plans to ease what it calls the marriage penalty in policy lending. Couples would be allowed to keep certain loan eligibility based on their own circumstances instead of automatically losing access when their incomes are combined after marriage.

Gov't to expand housing finance support for young, 1st-time buyers while keeping debt curbs

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Summary

The Financial Services Commission will expand housing finance support for young people, newlyweds and first-time homebuyers while keeping overall household-debt controls in place. FSC Chairman Lee Eog-weon said the package aims to avoid blocking genuine homebuyers and new housing supply. The plan keeps existing loan-to-value and debt-service ratio rules, while adding new support measures for younger borrowers and newlyweds.

Key Facts

The FSC will keep existing loan-to-value and debt-service ratio rules while easing access to loans tied to new housing supply and home purchases by young and first-time buyers.
The package includes a mortgage loan with longer-term financing for young people preparing to buy homes and a new guarantee product for jeonse deposit refunds.
The regulator plans to expand the use of borrowers' expected future income when calculating debt-service ratios, which could increase borrowing capacity for younger workers.
For newlyweds, the government plans to ease the marriage penalty in policy lending so couples can retain certain loan eligibility based on individual circumstances.
The FSC also plans to strengthen monitoring of housing-related lending to separate loans for actual home purchases from speculative demand.

By Park Han-sol

Published Aug 13, 2026 12:01 pm KST

A view of apartment complexes in Seoul seen from the Lotte World Tower, Wednesday / Yonhap

The Financial Services Commission (FSC) will expand housing finance support for young people, newlyweds and first-time homebuyers while maintaining its overall household-debt controls, as part of the government's efforts to stabilize the housing market, the regulator said Thursday.

FSC Chairman Lee Eog-weon announced a package of measures aimed at ensuring tighter lending rules do not unnecessarily restrict financing for genuine homebuyers or new housing construction.

The commission will maintain existing loan-to-value and debt-service ratio rules, while allowing banks to continue providing loans linked to new housing supply and home purchases by young and first-time buyers without being excessively constrained by household lending quotas.

A key part of the package is a three-pronged housing finance program for younger borrowers. The FSC plans to introduce a mortgage loan providing longer-term financing for young people preparing to purchase homes, alongside a new guarantee product for "jeonse" deposit refunds.

The regulator will also expand the use of borrowers' expected future income when calculating their debt-service ratios, potentially increasing the amount younger workers can borrow as their earnings are expected to rise over time.

For newlyweds, the government plans to ease what it calls the “marriage penalty” in policy lending. Couples will be allowed to retain certain loan eligibility based on their individual circumstances rather than automatically losing access to programs when their incomes are combined after marriage.

The measures are intended to strike a balance between containing household debt and ensuring that credit remains available to borrowers deemed to have genuine housing needs, according to the FSC.

It also plans to strengthen the monitoring of housing-related lending to distinguish between loans supporting actual home purchases and those contributing to speculative demand.

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