SEOUL-- South Korea's top financial regulator said Monday that it is necessary to discuss "at some point" whether to lift regulations that restrict people's borrowing to buy high-priced apartments amid growing calls for easing the rules put in place to curb soaring loan-based home purchases.

Earlier in the day, a local media report said that the Yoon Suk-yeol government is considering lifting the ban on home-backed loans for apartments valued over 1.5 billion won (US$1.1 million) as local home prices are showing signs of declining fast after years of excessive hikes.

"I think (whether to lift the ban) is an issue that should be discussed at some point," Kim Joo-hyun, chairman of the Financial Services Commission (FSC), told reporters after attending a meeting in Seoul.

He declined to elaborate on any time frame but noted that such discussion should be carried out by taking into consideration many other lending-related regulations, including the loan-to-value ratio.

Market watchers expect relevant government agencies, including the FSC and the finance ministry, will convene a real-estate policy meeting later this month to discuss whether to lift the ban on lending for high-priced home purchases.

The ban was one of a series of lending-restricting rules and tax hikes that the previous liberal Moon Jae-in government introduced to cool the overheated housing market and soaring household debt.

Home prices, however, have been showing signs of going down at a faster-than-expected pace with home transactions getting sluggish amid rising interest rates and concerns about an economic slowdown.

The recent sharp price downturn has stoked worries that it could precipitate a "hard landing" in the housing market that could ripple through the broader economy.

Source: Yonhap News Agency