South Korea will loosen LTV (loan-to-value ratio, a cap on borrowing against a property) rules for newly built villas and other non-apartment homes from the 31st, allowing up to 30% borrowing in regulated zones and up to 60% in non-regulated zones, while registered rental business operators and demolition-linked purchases can access 60% regardless of location. The move reopens business-purpose mortgage lending that had largely been barred in Greater Seoul and regulated areas, but its immediate effect may be limited because eligible homes must be first-time purchases within one year of completion and non-apartment starts in Greater Seoul have held at about 24% of the 10-year average for three years. That supply squeeze follows jeonse (South Korea's lump-sum lease system) fraud, a real estate project financing, or PF (development funding), crunch and higher construction costs, even as Seoul villa transactions and prices recover. The government says the policy is aimed at restarting the supply cycle, pairing it with looser building rules, higher construction loan caps and a youth-focused "Youth Future Bogeumjari Loan" from January next year, while analysts say the real test will be post-31st loan execution volumes and whether support is broadened to existing non-apartment housing.