Bigger and better

Korean banks said Wednesday they will raise the maximum cap for people taking out loans when renewing their jeonse (long-term rental deposit) contracts, from the previous 80 percent of the amount that had been raised to 80 percent of the entire jeonse price. For instance, if a tenant had been living at a jeonse house of 500 million won ($410,000) without a loan, and the price was raised to 600 million won in the renewed contract, they would have previously only been able to get at most 80 million won (80 percent of the 100 million won that it had been raised). With the new rules, they can get a loan of up to 480 million won, 80 percent of the new jeonse price. Hana Bank, Shinhan Bank and NH Nonghyup Bank will start the new system Friday. Woori Bank already increased the amount as of Monday. [YONHAP]