The government is aiming to hold down growth in household debt in the five percent range this year. 

The Financial Services Commission announced the plan on Thursday, saying the move is aimed at redirecting funds that were funneled into real estate speculation towards innovative start-ups and small-sized companies. 

To control the growth in household debt, the commission decided to have banks keep in place the so-called debt service ratio(DSR) to household loans in the second quarter. 

DSR, which was introduced last October, measures how much a borrower has to pay in principal and interest payments in proportion to his or her yearly income. It is one of the barometers used to check for risky household loans.

In a bid to mitigate excessive amounts of funds shifting towards household and real estate loans, the commission will introduce a buffer capital system. Under the system, more capital is accumulated if household loans expand.