Financial Services Commission(FSC) Chairman Yim Jong-yong has said that substantial deregulatory measures on housing loans will remain in place this year.
 
In a briefing on the commission’s plans for the year, Yim said on Wednesday that the debt-to-income(DTI) ratio required for households' borrowing will remain at 60 percent in 2017.
 
Yim said household debt is not something that can be addressed with financial policies alone as it is affected by a number of variables, including income, interest rates and real estate market conditions.
 
He stressed that household debt should be managed with a fundamental philosophy rather than short-term measures such as adjusting loan-to-value(LTV) and DTI ratios.
 
While retaining the DTI ratio at its current level this year, financial authorities are planning to control growth in household debt by also factoring in the debt-service-ratio.

The nation’s LTV ratio at 70 percent and the DTI ratio at 60 percent have been maintained since August 2014.