North Siheung Nonghyup in Siheung City, Gyeonggi-do, used as a loan window in the process of buying farmland in Gwangmyeong and Siheung districts by 9 LH employees investing 10 billion won. News 1
The financial authorities decided to postpone the announcement of the’Household Debt Management Plan’ by one month. This is because some of the employees of the Korea Land and Housing Corporation (LH), who have recently been suspicious of land speculation, abused the unit nonghyup as a means of speculation, revealing a blind spot for household loans, and the need for additional supplementation was raised.
The Financial Services Commission announced on the 23rd that it had postponed the announcement of the’Household Debt Management Plan’, which was scheduled to be announced during this month, to next month. The Financial Services Commission said, “In relation to the recent’LH speculation suspicion’, an opinion was raised that there is a need for additional regulatory overhaul on the management of non-housing mortgage loans and household debt management of non-banking sectors. We will announce it in April after comprehensively considering the LH-related measures of the company and the trends in household loans in the first quarter of this year.”
The need for additional maintenance of non-residents and mutual financial sectors was raised as it was revealed that some LH employees received intensive non-residents from the unit non-cooperative (mutual finance) near the planned development site. The nine LH employees who were suspicious of land speculation were found to have received a total of 4.3 billion won in loans only from the North Siheung Nonghyup to purchase farmland in Siheung, Gyeonggi and other areas where they were supposed to be developed. It was pointed out that the LTV, which is applied to mutual finance, is not only higher than that of banks, but is managed at the level of administrative guidance rather than law, so there is no means to sanction even if it violates this.
Accordingly, the financial authorities are preparing supplementary measures, such as checking out non-mainstreaming in all financial sectors beyond mutual financial sectors. The North Siheung Nonghyup has already begun field inspections from last week. Depending on the findings of the current situation, it is also discussed the possibility that more intensive regulatory measures will be included in the household debt management plan that has been postponed to next month. An official from the financial authorities said, “We will prepare supplementary measures by integrating the results of the audit by the Financial Supervisory Service.”
Jeonghyun Kim reporter [email protected]
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