(Seoul=Yonhap Infomax) Soo Yong Lee –


As South Korean banks continue to restrict new home mortgage lending, insurance companies are also raising barriers by suspending new mortgage originations or offering loans at significantly higher interest rates.


According to the insurance industry on the 24th, KB Insurance Co. is currently processing only those mortgage applications received up to early this month, effectively halting new loan intake since the start of the month.


Following a series of government real estate policy measures this year, insurers are winding down their mortgage lending operations for 2024 and preparing for next year’s business cycle.


Samsung Fire & Marine Insurance Co. has suspended non-face-to-face (online) mortgage lending for the remainder of the year, resuming only for loans to be disbursed in 2025.


Dongyang Life Insurance Co. stopped offering online mortgages in July, and is now only processing in-person mortgage applications scheduled for execution next year.


Hyundai Marine & Fire Insurance Co. has also closed its online mortgage channel, maintaining only face-to-face mortgage origination.


While some insurers continue to offer mortgage loans, interest rates have risen sharply compared to previous levels.


Hana Life Insurance Co.’s apartment mortgage rates now range from 4.49% to 7.48%, NongHyup Property & Casualty Insurance Co. offers rates between 4.02% and 7.30%, and Fubon Hyundai Life Insurance Co. posts a maximum fixed rate of 6.95% and a mixed rate of 7.05%.


Hanwha Life Insurance Co. has set its maximum mortgage rate at 6.32%, Kyobo Life Insurance Co. at 5.49%, and Samsung Life Insurance Co. at 5.01%, with most insurers now quoting rates above 5% for home mortgages.


NongHyup Life Insurance Co. stands out with relatively lower rates, ranging from 3.43% to 4.13%.


With major banks such as KB Kookmin Bank and Hana Bank limiting their remaining mortgage lending for the year, insurers are also moving to manage their mortgage portfolios through year-end.


“Although the volume of mortgage inflows at insurance companies is not as large as at banks, the industry is shifting into year-end management mode,” said an official at one insurer.



sylee3@yna.co.kr


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