SEOUL, June 19 South Korea on Monday said it
will tighten loan limits for home buyers to 60 percent of
property value from the current 70 percent in regions showing
signs of overheating including Seoul, the finance ministry and
financial regulator said in a statement.
Debt repayments will be limited to 50 percent of home
buyers' annual income in those selected regions, down from
current 60 percent, it said.
The new measures will be effective from July 3.
The government will also restrict the resale of newly built
apartments in Seoul, some parts of Busan as well as in Sejong
until registration of property ownership is complete, to cool
speculative investments in those regions, it said.
(Reporting by Cynthia Kim; Editing by Shri Navaratnam)