Samsung Electronics Limits In-House Housing Loans to 85㎡ Amid Regulatory Concerns

Following Samsung Display, Samsung Electronics has finalized a policy to limit the properties eligible for its in-house housing stability loans for employees without homes to those with a dedicated area of 85㎡ or less in the Seoul metropolitan area and major cities.

This move is interpreted as a response to criticism that semiconductor performance bonuses and generous in-house loans are fueling the rise in housing prices in the capital region.

According to the Samsung Electronics branch of the Samsung Group's super-corporate labor union, Samsung Electronics has decided to restrict the scope of its in-house housing stability loans, which are set to be implemented this month, to homes of 85㎡ or less in the Seoul metropolitan area and major cities.

It is reported that the loan program will be implemented within this month once the final details are coordinated.

The decision to limit the eligible properties to 85㎡, often referred to as the "national standard size," is intended to mitigate the impact of low-interest in-house loans on the real estate market.

The eligibility for Samsung Electronics' housing stability loans is limited to employees who do not own a home or those who own one home on the condition that they sell it.

With an interest rate of around 1.5% per year, the terms are exceptionally favorable compared to the 4–5% mortgage rates currently offered by commercial banks.

Furthermore, because in-house loans are classified as personal lending for corporate welfare purposes, they are not subject to regulations such as the Debt Service Ratio (DSR).

For this reason, financial authorities have expressed concerns that large-scale performance bonuses and low-interest in-house loans could stimulate real estate prices in areas near Samsung Electronics' business sites, such as Dongtan-gu in Hwaseong and Giheung-gu in Yongin.

Financial Supervisory Service Governor Lee Chan-jin stated during a press conference last month, "I have a critical awareness that some level of regulation on in-house loans may be necessary for the public interest."

It is reported that Samsung Electronics management and the labor union are discussing the abolition of loan limits by job rank in exchange for the restriction on the size of eligible properties.

Once the revised plan is finalized, the loan amount available will be 500 million won regardless of job rank.

Such large-scale in-house lending is known to be rare even within the industrial sector.

SK Hynix lends up to 100 million won in housing funds to employees without homes, while Samsung Electro-Mechanics does not have an in-house loan program.

Reported by Kim Minjeong | Video by Kim Na-on | Graphics by Lee Jung-ju | Produced by SBS Digital News
※ Please note: This article was translated by AI and may contain errors.