South Korea’s antitrust regulator said that it has launched a reinvestigation into allegations that the country’s four major banks colluded on setting lending limits, the loan-to-value (LTV) ratio. (Image courtesy of Yonhap)
SEOUL, Feb. 12 (Korea Bizwire) – South Korea’s antitrust regulator said Wednesday that it has launched a reinvestigation into allegations that the country’s four major banks colluded on setting lending limits, the loan-to-value (LTV) ratio.
The Fair Trade Commission (FTC) has dispatched its investigators to the headquarters of Shinhan Bank and Woori Bank as part of its ongoing investigation, according to officials.
The four banks include KB Kookmin Bank and Hana Bank, according to FTC officials.
The banks are suspected of sharing approximately 7,500 LTV-related documents and aligning their lending limits, thereby restricting market competition and gaining unfair profits 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 reinvestigate the case instead.
The FTC officials noted an on-site investigation of the other two banks — KB Kookmin and Hana — will likely take place in the near future.
(Yonhap)
