Samsung Electronics to Limit Employee Housing Loans to Homes of 85 Square Meters or Smaller

Samsung Electronics Co. plans to tighten requirements for its employee housing loan program by restricting support to smaller residences, Yonhap reported Sunday. The company decided to limit eligible homes to those measuring 85 square meters or smaller in the greater Seoul area and six major cities, according to industry sources cited by Yonhap.

In May, Samsung Electronics agreed with its labor union to offer housing loans of up to 500 million won at an annual interest rate of 1.5 percent. Loan amounts had varied depending on employees' positions. The company is considering abolishing differences in loan limits and offering 500 million won to all applicants in exchange for introducing the size restriction, the sources said.

In June, Financial Supervisory Service Gov. Lee Chan-jin said corporate housing loans should be partially regulated for the public good.