BOK Governor Rhee Chang-yong Says, “Overall Cap on Real Estate Lending Is Needed, DSR Must Also Be Tightened”
- Input
- 2026-02-23 16:38:27
- Updated
- 2026-02-23 16:38:27
During a briefing to the Strategy and Finance Committee on the 23rd, Rhee responded to a question from Oh Gi-hyoung of the Democratic Party of Korea (DPK) about household debt. He stressed, “The domestic real estate problem cannot be solved by fixing just one element; the system needs to change across the board.”
He noted, “The overall cap on real estate lending has been criticized, but it is something we must maintain.”
Rhee went on to argue, “The Debt Service Ratio (DSR) also needs to be strengthened.” Currently, banks manage DSR at 40% or below. In other words, if someone earns 100 million won a year, their annual principal and interest payments on loans cannot exceed 40 million won. His remarks are being interpreted as a call to lower this threshold further.
Rhee added, “In addition to the government, it is essential to have a Macroeconomic Stability Management Committee, or similar consultative body, where the BOK can provide objective input.”
Earlier, in response to a question from Cha Kyu-geun of the Cho Kuk Innovation Party, Rhee said, “Household debt, especially real estate-related loans, is a major source of instability for the national economy, so it needs to be reduced.” He continued, “Whether for multiple-home owners or single-home owners, I have long argued that tax policy must be improved not only as part of real estate measures but also from the perspective of fairness in the tax system.”
When asked about tougher regulations on multiple-home owners, Rhee replied, “In the short term, because we have data, I can say there is some effect in calming housing prices, but it is difficult to predict whether the long-term outcome will be better.” He pointed out, “Ultimately, this is because the concentration in the greater Seoul metropolitan area needs to ease.”
taeil0808@fnnews.com Kim Tae-il Reporter