The South Korean government is clamping down on loosely regulated loans that have fueled the country's snowballing household debt.
 
Various finance-related ministries announced a comprehensive plan on Tuesday, which includes stricter measures on key loan regulations.
 
A new debt-to-income(DTI) ratio will be enforced from January next year, measuring how much of an individual's monthly income goes toward paying off mortgage loans, which make up the largest share of household debt. This would make it difficult for owners of multiple homes to take out additional loans, which could also help cool down the overheated property market.
 
The government plans to introduce an even tighter criterion from the second half of 2018. The debt service ratio will measures how much of a family's disposable income must be devoted to servicing their loan obligations.