KB Kookmin Bank and Shinhan Bank held a combined roughly 10.9 trillion won ($7.9 billion) in mortgages with loan-to-value ratios of 80% or higher as of the end of June, according to banking data. The figures have come under focus because higher-LTV lending leaves banks more exposed if home prices fall and because some loans may have been used to buy homes rather than for business purposes. KB Kookmin held 2.22 trillion won in mortgages at 80% LTV or above, including 2.18 trillion won in the 80% to 100% range and 36.8 billion won at 100% or more. Shinhan held 8.68 trillion won in the above-80% to 100% category, up 336.4 billion won, or 4.0%, from the end of last year. South Korean regulators already treat mortgages above 60% LTV as high risk and apply double the average risk weight (capital risk measure) used for ordinary mortgages. That weighting is set to rise to two to four times starting next year. The issue has also entered the policy debate after President Lee Jae-myung said last month that unlimited recognition of collateral value "is something that needs to be reconsidered." Separately, the average spread on newly issued installment-repayment mortgages at the five major banks reached 3.27% in June, the highest since the data series began in July 2019, while growth in household lending slowed somewhat this month.