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South Korea's FSS Sets 100% LTV Limit for Auto-Backed Loans at Savings Banks on July 24

2026-07-28 00:51:25

According to South Korea's Financial Supervisory Service (FSS) on July 24, the agency set a 100% loan-to-value (LTV) limit for auto-backed loans (personal) at savings banks to curb excessive lending. The guidance requires lenders to conduct auto-backed loans within the 100% LTV threshold, with any amount exceeding this subject to the same credit loan standards. The tightening follows a 150% surge in auto-backed loan applications at savings banks since June 27's credit regulation—rising from a daily average of 2,230 requests to 5,636, according to data provided by ruling party lawmaker Kim Sang-hoon's office.

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