Search results for stress DSR
Finance
Banks to apply step 2 stress DSR to non-capital mortgages in second half
South Korean banks will continue to apply the step 2 stress DSR standard to home mortgage loans outside the capital region in the second half of this year. Mortgages in the Seoul metropolitan area and in regulated zones will be assessed under the step 3 standard, while regional mortgages keep a more relaxed stress-rate approach. The Korea Federation of Banks said the step 2 standard applies from July 1 to Dec. 31 under revised administrative guidance.
Finance
President Lee declares all-out war on housing market, loan curbs in sight
President Lee Jae-myung has issued a series of tough messages on the housing market following the Jan. 29 supply measures, raising expectations of stronger policy action. Lee has vowed to crack down on multi-home speculation and warned of broader economic distortions from rising house prices. Financial authorities are reviewing additional curbs, including expanding stress DSR rules and tightening management of mortgage lending, as they seek to restrain household debt growth.
Finance
Household loans rise 37.6 trillion won in 2025 as growth slows, turns negative at year-end
South Korea\'s household loans across the financial sector rose 37.6 trillion won in 2025 from end-2024, slowing from the previous year\'s increase, the Financial Services Commission said. The household debt-to-GDP ratio continued to fall, reaching 89.3 percent in the third quarter. Loans declined by 1.5 trillion won in December, reversing gains a month earlier. The FSC said it will press ahead with tighter debt management in 2026 and apply revised levy rates for a housing finance credit guarantee fund from April.
