South Korean President Lee Jae-myung signalled the need for transitional measures after tighter controls on total household lending disrupted funding for balance payments by people who already signed home contracts. Speaking at a public forum on real estate policy, Lee responded to a participant who said reduced loan limits prevented a balance-payment loan for an apartment bought for owner-occupation. The Financial Services Commission chairman said authorities would consult banks to prevent excessive loan tightening.

South Korean President Lee Jae-myung (이재명) said restrictions on borrowing to buy expensive homes could be sidestepped if those homes are later used as collateral for business loans. He asked financial authorities to review possible system fixes and questioned the level and effectiveness of a proposed macroprudential levy on loans tied to high-priced homes. Financial Services Commission Chairman Lee Eok-won said authorities have checks to prevent misuse of business loans and would tighten oversight.