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South Korea's LH Removes Bank Caps on Group Loans, Extends Escrow Terms to 60 Days

2026-08-06 00:02:44

According to Yonhap Infomax, on August 6, South Korea's LH (Korea Land and Housing Corporation) relaxed group loan participation criteria for apartment units that failed to secure initial funding. The agency removed caps on the number of participating banks and extended escrow periods for interim payments to 60 days across all payment stages. Previously, only the first interim payment was eligible for up to 60 days escrow, and participation was limited to one or two banks. The move aims to encourage bank participation in group lending amid government pressure to expand housing supply.

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