President Moon Jae-in on Thursday called on financial authorities to closely monitor banks to ensure a smooth supply of loans for "jeonse" home rentals.

Moon made the remarks after financial authorities decided to ease some restrictions on loans taken out for home rentals as part of efforts to protect people in actual need of borrowing money, according to presidential spokesperson Park Kyung-mee.

Jeonse is a home rental system unique to South Korea in which tenants pay a large sum of money as a deposit instead of paying monthly fees.

Earlier in the day, Koh Seung-beom, the chief of the Financial Services Commission (FSC), told reporters that controls on such loans for renting homes through the "jeonse" arrangement will be managed in a "flexible" manner. (Yonhap)