Owners of homes in South Korea worth more than 900 million won are banned as of Monday from taking out loans aimed to secure a lump-sum housing deposit known as jeonse.
 
Jeonse is a type of lease in South Korea where a tenant puts down a lump-sum deposit and the landlord collects interest on it and then returns the principal when the tenant moves out. 

The new government move is aimed at discouraging so-called gap investments, a major mechanism of property speculation through which investors buy one or more residences with their jeonse loans plus jeonse deposits paid by prospective tenants. 
 
Under the tougher real estate regulations first announced a month ago, jeonse loan borrowers who purchase a residence for over 900 million won or who own multiple homes will have to pay back their loans immediately.
 
The new rules, however, only apply to loans approved after Monday.
 
Domestic banks will check the number of homes owned by jeonse loan borrowers at least once every three months though the Land Ministry's related system.