Bank of Korea Governor Rhee Chang-yong warned that a rapid reduction in household debt could destabilize the economy, advocating for a gradual decrease to 80% of GDP and calling for consistent real estate and macroprudential policies to manage risks.
South Korea’s new mortgage rules will cut loan limits for borrowers with annual incomes of 100 million won by up to 14.7%, making Seoul apartments largely inaccessible to the middle class without significant cash reserves.
South Korea tightens mortgage lending in Seoul and regulated areas, capping loans for high-value homes and expanding DSR rules to curb speculative demand and stabilize the housing market.
South Korea’s Land Minister Kim Yun Deok signaled that expanding real estate regulatory zones is inevitable, with new measures under review as the government prepares to announce additional property curbs this week.
South Korea's Financial Services Commission signaled it may extend DSR rules to jeonse loans if household debt risks persist, while shelving equity-sharing mortgage plans amid unfavorable conditions.
South Korea’s card loan balances fell for a second month in July as tighter household debt rules and stricter DSR limits curbed new lending, with major card issuers reporting a combined 42.49 trillion won in outstanding loans.