Company: SHG
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001193125-25-089950
Chunk: 81

Company: SHINHAN FINANCIAL GROUP CO LTD
Filing Date: 2025-04-23
Form: 20-F
Chunk 81
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 Business, our banking subsidiaries were subject to, when extending mortgage and home equity loans, the maximum loan-to-valueratio of 70% (subject to certain exceptions, including the regulated areas described below) and the maximum debt-to-incomeratio of 60% (only in respect of housing units located in the greater Seoul metropolitan area, subject to certain exceptions). The regulations on mortgage and home equity loans are susceptible to the changes of housing market cycles and have been revised from time to time. From 2017 to 2022, the Government led by President Moon Jae-inannounced and implemented a series of robust polices aimed at taming speculation and deterring the rise of housing prices. However, since the second half of 2022, the Government led by President Yoon Suk Yeol announced and implemented a series of policies to ease the demand-side regulations in the real estate market in order to prevent housing prices from crashing due to the recent hike in interest rates. For example, the Government has released most areas from “speculative areas”, “overheated speculative areas” and “adjustment targeted areas” (collectively, the “regulated areas”) where tighter loan-to-valueratios and debt-to-incomeratios are applicable to mortgage or home equity loans, with only Gangnam-Gu, Seocho-Gu, Songpa-Guand Yongsan-Guin the greater Seoul metropolitan area currently remaining as the regulated areas, removed the application of stricter loan-to-valueratio to new loans secured by high-price houses located in the regulated areas and allowed the extension of new loans secured by houses located in the regulated areas to households that already own one or more houses. The Government also increased the loan-to-valueratio applicable to the regulated areas (i) up to 50% of the appraised value of the houses, except that such maximum loan-to-valueratio is 70% for low-incomehouseholds that (1) have a combined (in case of married couple) annual income of no more than W90 million, (2) do not currently own any housing and (3) are using the loan to purchase low-pricehousing valued at W900 million or 49

less (W800 million or less in case of houses located in “adjustment targeted areas”) and (ii) up to 80% of the appraised value of the houses, for new loans to a first-time home buyer with a maximum residential mortgage loan amount of W600 million or less. The regulations on the