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Managing Household Debt in South Korea Through the Third-Phase DSR Policy
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Managing Household Debt in South Korea Through the Third-Phase DSR Policy
South Korea’s household debt has reached concerning levels, surpassing 100% of GDP. In response, the government is implementing decisive measures to mitigate the risks posed by increasing debt, particularly in the housing sector. The third-phase Stress Debt Service Ratio (DSR), which will come into effect on July 1, 2025, represents a key step in addressing these risks.The third-phase DSR introduces a stress interest rate on household loans to e…
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