Home > Business > Finance

FTC probes KB Kookmin, Hana over alleged household loan ratio collusion

Published: 17 Feb. 2025, 17:16

Korea's Fair Trade Commission [YONHAP]

Korea's antitrust regulator launched an on-site investigation at the headquarters of two major banks on Monday as part of a reinvestigation into alleged industrywide collusion to set lending limits based on the loan-to-value (LTV) ratio.

The Fair Trade Commission (FTC) sent investigators to the headquarters of KB Kookmin Bank and Hana Bank, following a similar probe last week at the headquarters of Shinhan Bank and Woori Bank.

The four banks are suspected of sharing approximately 7,500 LTV-related documents and aligning their lending limits, thereby restricting market competition and gaining unfair profit at the expense of financial consumers.

The LTV ratio is a key regulatory tool used to curb household loans as it limits the maximum amount homeowners can borrow based on the value of their collateral.

The FTC was earlier scheduled to make its final decision in November based on its initial investigation of the banks but had decided to reopen the case instead.

Yonhap