debt service ratio Archives

Banks to Implement Stricter Rule for Mortgages in Q4 Next Year

SEOUL, Nov. 27 (Korea Bizwire) — South Korea’s financial regulator said Sunday it will require first-tier banks to implement a stricter rule for mortgage lending in the fourth quarter of next year, in a fresh bid to better manage growing household debt. Currently, people’s repayment ability for home mortgages is calculated on a ratio that [...]

Elevated Household Debt Weighs on Many Households in Korea

SEOUL, Mar. 21 (Korea Bizwire) — A growing number of South Korean households had difficulties paying off their debt with their income last year, data showed Sunday, raising concerns over their financial stability and shrinking domestic consumption. “Marginal households” whose debt-to-disposable income ratio is over 40 percent tallied at 1.58 million, accounting for 14.8 percent [...]