The nation’s four major commercial banks have been fined a combined total of 272 billion won, or around 185 million U.S. dollars, after allegedly colluding on real estate-backed lending limits based on loan-to-value(LTV) ratios.

According to the Fair Trade Commission(FTC) on Wednesday, Hana Bank, KB Kookmin Bank, Shinhan Bank and Woori Bank shared LTV-related information and adjusted the LTV ratios between March 2022 and March 2024 to restrict competition in the loan market.

The LTV ratio is designed to curb household debt by restricting the amount of money borrowed based on the value of the property used as collateral.

The antitrust regulator said the banks limited borrowers’ right to choose among lenders in violation of the Monopoly Regulation and Fair Trade Act, estimating that the banks brought in a total of six-point-eight trillion won in interest as a result.

The legislation prohibits anti-competitive collusion through the exchange of sensitive business information under a change that took effect in December 2021, and this is the first penalty related to the new provision.