South Korea Slashes LTV in Seoul to Cool Property Market

South Korea announced tighter mortgage rules for affluent Seoul districts on Sunday to curb rising home prices and ease the capital’s housing shortage.

Starting Monday, the loan-to-value (LTV) ratio in areas such as Gangnam and Yongsan will be cut to 40% from 50%.

The country’s mortgage system already ties loan eligibility to income, property value, and location, making borrowing rules complex.

To boost affordable housing, authorities will expand development on land owned by state-run firms and streamline apartment redevelopment rules.

The measures reflect a dual approach of curbing speculative demand while accelerating supply through public land use and simplified construction regulations.

Separately, Seoul said Monday it will unveil new external economic strategies in October to respond to shifts in the global trade order.