금융위원장 "DSR규제 차등 적용"…RTI 대폭 강화 예고

TheKorean government has hinted tougher measures on mortgage loans…to reduce the country's massive household debt.
Although the specifics won't be released until later this week, the Financial Services Commission says, banks will soon have new guidelines on what would be considered risky borrowing.
Ko Roon-hee explains further.
Speaking to reporters on Monday, Financial Services Commission Chair Choi Jong-ku said Korean banks will soon be required to have more than two standards of what would be considered as high debt service ratio.
A debt service ratio, or DSR, is calculated by dividing a borrower's yearly income from the total debt to be paid off… including principal and interest payments.
A high DSR is negative from the bank's point of view, because it means a customer's existing borrowings and repayment are high relative to his or her income.
Choi said having two or more high DSR levels will allow banks to effectively manage risky borrowings.
Since March this year, banks have applied their own DSR standards to almost all household loans on a pilot basis.
Although the agency didn't confirm the details, it is highly likely that the new guideline of high DSR and the percentage of loan available to borrowers will be announced later this week.
Commercial, regional and state-run banks would have different standards.
Through these measures, the government hopes to reduce the country's growing household debt, estimated at one-point-three-trillion U.S. dollars.
Meanwhile, regulators also plan to toughen the Rent-to-Interest or RTI ratio for loans taken by lease business operators in order to decrease money inflows into the real estate market.
Ko Roon-hee, Arirang News.