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As the second half of 2025 begins, the Korean real estate market is experiencing new changes. With the implementation of Stress DSR Phase 3 starting in July, investors need a more careful approach than ever before. Market Outlook for Second Half 2025 The real estate market in the second half of this year can be summarized with three key keywords. First is 'selective recovery.' Not all regions and housing types will rise simultaneously, but only properties meeting specific conditions are expected to see price increases. Second is 'policy adaptation.' With the implementation of DSR Phase 3 reducing loan limits, this could actually be an opportunity for investors with sufficient capital, as competition decreases. Third is 'widening regional gaps.' The disparity between metropolitan and regional areas, and between new and old cities, is expected to grow further. Particularly, the difference between areas with improved transportation infrastructure and thos...

Massive Overseas Property Portfolio Faces Post-Pandemic Challenges South Korean financial institutions hold approximately 56 trillion won ($42 billion) in overseas real estate alternative investments, with regulators identifying 2.6 trillion won ($2 billion) as potentially problematic assets. The Financial Supervisory Service (FSS) announced enhanced oversight focusing on office properties that have struggled since the COVID-19 pandemic reshaped global workplace dynamics. Scale and Scope of Korean Overseas Investment The FSS data released on July 3rd reveals the massive scale of Korean financial institutions' international real estate exposure. This 56 trillion won figure represents a substantial increase from previous years, reflecting Korean firms' aggressive expansion into global property markets during the low-interest-rate environment that preceded recent monetary tightening. North American markets, particularly the United States, represent the largest concentrati...

Immediate Market Impact of New Restrictions One week after the Lee Jae-myung administration implemented its 600 million won cap on housing mortgage loans to stabilize Seoul property prices, the real estate market is experiencing significant disruption. With purchase cancellations and contract withdrawals surging, experts are noting both positive stabilization effects and concerning market contraction. The June 27 real estate measures, centered on the 600 million won mortgage cap, represent ultra-strong regulations that limit total loan amounts regardless of income or property value. This policy targets the top 10% of borrowers and is central to the government's plan to reduce annual household debt growth by 25% from the projected 50 trillion won increase. Given that Seoul's average apartment price stands at 1.4 billion won, the 600 million won restriction effectively limits market participation to buyers with substantial personal capital. Investors...

Paradoxical Effects of Loan Restrictions Despite the South Korean government's strictest real estate loan regulations, Seoul apartment prices continue their upward trajectory. The combination of mortgage loan limits exceeding 600 million won and third-phase DSR (Debt Service Ratio) regulations has dramatically reduced transaction volumes, but paradoxically created upward pressure on housing prices due to property shortages. Regulatory Measures and Market Response The government's super-strong real estate measures announced on June 27th aimed to control housing prices in Seoul and the greater metropolitan area by limiting maximum mortgage loans to 600 million won. Combined with the implementation of third-phase DSR regulations, purchasing homes through loans has become significantly more difficult. However, these powerful regulations are producing paradoxical results. Despite property owners in Han River belt areas reducing asking prices by hundreds of millions of won,...

Hyundai E&C Launches Comprehensive "Total Care" Service for Reconstruction Projects Starting with Apgujeong Hyundai Engineering & Construction (Hyundai E&C), one of South Korea's leading construction companies, is introducing a paradigmatic shift in the reconstruction market through its innovative "Customized Total Care for Reconstruction" service. Beginning with the Apgujeong reconstruction project, this comprehensive approach extends far beyond traditional construction services to provide integrated real estate solutions, drawing significant attention from the industry. Innovation in Site-Specific Customized Consulting The core of Hyundai E&C's new service lies in meticulously analyzing the unique characteristics of each reconstruction site to provide tailored solutions. The strategy focuses on maximizing customer satisfaction through differentiated approaches that reflect the disti...