Government lending restrictions combined with stock market gains have driven a sharp increase in homebuyers liquidating stocks and bonds to fund purchases.
Data from the Ministry of Land, Infrastructure and Transport, obtained by Rep. Kim Sang-hoon of the People Power Party on the National Assembly's Political Affairs Committee, showed proceeds from stock and bond sales used for home purchases totaled 3.89 trillion won from July 2024 through January 2025, accounting for 3.9% of total housing funds.
Annual figures for funds raised through securities sales were 2.51 trillion won (1.4%) in 2020, 1.12 trillion won (1.4%) in 2022, and 3.18 trillion won (2.6%) in 2024. Last year, the figure approached 6 trillion won at 5.84 trillion won. January alone reached 529 billion won. Housing fund plans are required documents disclosing funding sources for all home purchases in regulated areas such as Seoul and for properties valued at 600 million won or more in non-regulated areas.
By age group, buyers in their 30s saw the share of stocks and bonds in housing funds triple from 1.3% in 2020 to 4.5% as of January. This cohort rarely exceeded 1 trillion won annually in securities sales for home purchases. The figure hit 1.26 trillion won (2.0%) in 2021 when the KOSPI reached 3,000 amid post-pandemic liquidity, but remained at 682 billion won (1.3%) in 2020, 287 billion won (1.4%) in 2022, 357 billion won (1.7%) in 2023, and 740 billion won (2.2%) in 2024. The trend shifted when domestic markets began rising last July.
During the same period, the share for buyers in their 50s surged from 1.6% to 5.5%. Increases were also seen among those in their 20s (0.9% to 3.1%), 40s (1.5% to 3.8%), and 60 and older (1.0% to 3.9%).
Market observers attribute the diversification of funding sources to financial authorities' lending crackdown. The June 27 and October 15 measures lowered maximum loan limits for borrowers in the Seoul metropolitan area to 600 million won. Purchasing high-value properties without selling existing assets or receiving gifts has become difficult.
"As options for raising funds through loans have narrowed, more buyers appear to be turning to their own resources," said Yoon Su-min, a real estate specialist at NH NongHyup Bank.
Rep. Kim noted, "Young people without homes naturally have a strong desire to use stock investment gains for homeownership." He added, "Authorities need to consider easing rigid lending regulations, taking into account the characteristics of demand groups such as newlywed couples."
Bank lending continued to decline last month amid the government's strict regulations and real estate pressure policies. As of February 26, mortgage loan balances at the five major banks—KB Kookmin, Shinhan, Hana, Woori, and NH NongHyup—stood at 610.08 trillion won, down 46.9 billion won from the previous month-end. This marks the second consecutive monthly decline following January. Household loan balances at the five banks also fell by 387.4 billion won over the month to 765.43 trillion won as of February 26.