Buttimok Jeonse Loan Use Falls as South Korean Rental Costs Rise

  • South Korea’s Buttimok lending and commercial-bank jeonse balances declined as higher deposits and borrowing costs squeezed tenants.
  • Buttimok issued 124,959 new loans worth 13.5041 trillion won in 2025, while commercial-bank balances fell about 4.3 trillion won from their peak.
  • Newlywed Buttimok lending fell 49.8% in cases and 53.6% in value, as Seoul rental listings and qualifying properties contracted.

Use of South Korea’s Buttimok jeonse loan, a low-rate state-backed product for eligible non-homeowners and newlyweds, fell sharply in 2025 as rising deposits and borrowing costs reduced access to qualifying properties. Korea Housing & Urban Guarantee Corporation data released by Song Eon-seok of the People Power Party showed 124,959 new loans worth 13.5041 trillion won ($9.9 billion), down 42.1% in cases and 45.5% in value from 2024. Separately, outstanding jeonse loans at commercial banks fell from 168 trillion won at the end of September last year to 163.72 trillion won at the end of June this year, as rates rose to 4.19% in July from 2.64% in July 2021. Tighter owner-occupancy rules and limited rental supply added pressure, while Seoul apartment deposits and monthly rents reached reported highs.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.