[2020 National Audit] Yoon Seok-heon "Expecting DSR Picture to Emerge Soon"

Yoon Seok-heon, Governor of the Financial Supervisory Service (Photo by Yonhap News)

[Asia Economy Reporter Kim Hyo-jin] Yoon Seok-heon, Governor of the Financial Supervisory Service, said regarding the rapid increase in household debt, "I expect that a clear picture of the total debt service ratio (DSR) will emerge soon."

Governor Yoon made this remark on the 13th during the National Assembly's Political Affairs Committee audit, in response to Rep. Oh Ki-hyung of the Democratic Party of Korea's suggestion that "the household loan regulation system should be changed to focus on actual repayment ability."

Rep. Oh stated, "We need to reconsider resetting the total management indicators for the excessive parts of household debt and credit loans," and urged, "We should discuss when to fully implement the DSR."

Governor Yoon responded, "I completely agree," adding, "We have actually been advocating for a tight approach, but we are concerned that due to COVID-19, funds might not sufficiently reach vulnerable and low-income groups."

He also said, "I believe that money flowing out from banks is not only for living expenses but also significantly going into the stock and housing markets," and added, "It is necessary to review both sides in a balanced manner and establish comprehensive indicators."

This content was produced with the assistance of AI translation services.