Search results for stress DSR
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.
Finance
FSC extends phase 2 stress DSR for regional mortgages by six months
South Korea\'s Financial Services Commission decided to apply phase 2 stress debt service ratio rules to regional mortgage loans through the first half of next year, extending the current treatment to June 30. The move follows the July introduction of phase 3 stress DSR, under which regional mortgages had been exempted for six months. The FSC cited the impact on household debt and conditions in regional property and construction. It will also improve home-price calculations for jeonse loan guarantee reviews, allowing recent appraisal values at a borrower\'s request from Jan. 2.