 |
Photo = Fair Trade Commission |
[Alpha Biz= Paul Lee] The Korea Fair Trade Commission (KFTC) has initiated sanction procedures against South Korea’s four major commercial banks — KB Kookmin, Shinhan, Hana, and Woori — over allegations of collusion related to Loan-to-Value (LTV) ratios.
LTV ratios determine the maximum loan amount a bank can offer to borrowers using real estate as collateral. The commission claims that the banks shared over 7,500 pieces of LTV-related data in advance, aligning lending limits and other loan conditions, potentially restricting borrowers' access to housing loans.
According to financial industry sources on May 11, the KFTC sent an examination report to the banks on April 18, stating that the alleged collusion led to reduced mortgage lending limits. As a result, borrowers were forced to resort to higher-interest unsecured loans.
The banks have strongly denied the allegations, asserting that no collusion took place. Some have even indicated plans to pursue legal action in response to the commission's findings.
The KFTC is expected to finalize the level of sanctions after reviewing the banks’ rebuttals and scheduling a plenary session.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
