South Korean banks tighten mortgage loan restrictions amid rising home prices and household debt.
South Korean banks are tightening mortgage loan restrictions due to rising home prices in Seoul and increasing household debt. Following a request from the Financial Services Commission, banks will enhance borrower screenings and permit smaller loans. The stress debt service ratio (DSR) will continue to limit overall lending. By June's end, household credit surged to 1,896.2 trillion won ($1.42 trillion), reflecting a significant increase over the previous quarter.
September 01, 2024
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