South Korea's Major Banks Suspend Mortgage Insurance Enrollment Starting July 16

According to financial sector sources, South Korea's major commercial banks announced on July 14 that they are suspending mortgage insurance (MCI and MCG) enrollment for home loans. Woori Bank will halt the services starting July 16 for apartment loans, real estate loans, and other mortgage products. The bank is also cutting monthly loan quotas from 3 billion won to 1 billion won per branch.

Other major banks, including KB Kookmin, Shinhan, Hana, and NH Nonghyup, previously suspended mortgage insurance enrollment, while SC First Bank is halting MCI enrollment starting July 15. Lenders are implementing selective volume controls on household lending per regulatory guidelines, combining broker channel closures with insurance restrictions and reduced preferential interest rates.