Regulatory Alerts2025-05-20 | 84620FSC Announces Plan to Implement Third-stage Stressed DSR Rule as Scheduled from July 1
The Financial Services Commission confirmed the scheduled implementation of the third-stage stressed debt service ratio rule for all household loans starting July 1, 2025, applying a 1.50 percent additional stress rate. While mortgage loans outside the Seoul metropolitan area are exempt until December 31 to allow for economic reassessment, the rule mandates higher stress rates for mixed or periodically changing interest rate structures to encourage fixed-rate lending. Authorities emphasized preemptive debt management and urged financial institutions to bolster internal controls amid recent increases in household loan growth.
Share