Major commercial banks in South Korea sharply expanded the balance loan limit for the “The H Bangbae” apartment complex in Seocho-gu, Seoul, raising the total allocation from 500亿元 to approximately 1.55 trillion won within a single day, according to financial sector reports from August 2026. KB 국민, 신한, 하나, 우리, and NH농협 banks implemented the increases ahead of the complex’s scheduled move-in period next month, lifting individual bank caps that previously hovered around 100亿元 to between 2000亿元 and 4000亿元.
Bank Allocations and Rate Adjustments
Shinhan Bank secured the largest share with 4000亿元, followed by Hana Bank at 3500亿元, KB Kookmin and NH Nonghyup at 3000亿元 each, and Woori Bank at 2000亿元, with institutions noting that further limit expansions remain possible. Alongside the increased liquidity, lenders trimmed borrowing costs for prospective residents. Shinhan Bank introduced a new-COFIX-linked rate of 4.68 percent—incorporating a 1.5 percentage point spread—which undercuts its previous six-month bank debenture rate of 4.74 percent by 0.06 percentage points. NH Nonghyup lowered its new COFIX spread from 1.6 to 1.5 percentage points to cut rates by 0.1 percentage points, matching a similar 0.1 percentage point reduction made by KB Kookmin Bank a day prior.
Regulatory Shifts and Borrower Caps
According to commercial banking sources, the lending expansion stems from financial authorities easing household debt guidelines by raising the annual household debt growth target from 1.5 percent to 3.0 percent. Regulators also excluded group loans—such as migration, intermediate, and balance loans—from individual bank lending caps, allowing institutions to secure low-risk retail credit without hitting total volume limits. A commercial bank official stated that the strong creditworthiness of borrowers in a core Gangnam district combined with high collateral stability fueled the competitive push among lenders.
Despite the broader lending pools, individual borrower restrictions remain firmly in place. Loan limits continue to be calculated using a collateral value set at roughly 60 percent of the apartment’s initial pre-sale price, while standard Debt-to-Income (DTI) and Loan-to-Value (LTV) regulations apply unchanged. The H Bangbae redevelopment project in Bangbae-dong encompasses 3080 total households, prompting market observers to anticipate similar balance loan increases across other large apartment complexes slated for completion later this year.
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