Starting Tuesday, South Korea has tightened its lending regulations with the implementation of the third phase of the so-called stress debt service ratio(DSR) system. 

The finance ministry on Tuesday published a booklet on changes to be introduced in the second half of the year, which outlines the new systems and regulations. 

As the stress DSR system enters its third phase on Tuesday, lenders will now charge an additional one-point-five percent interest on each loan, thereby raising repayment installments and reducing the amount one can borrow.
 
Starting September 1, government-led deposit insurance coverage will double to 100 million won, or almost 74-thousand U.S. dollars, in the first increase since 2001. 

Under the change, the Korea Deposit Insurance Corporation can reimburse deposits of up to 100 million won per person at any financial institution in cases of bankruptcy or suspension of business.