Party and government: "Next year's household loan growth rate to be managed at 4-5% to avoid impact from Jeonse and group loans"

[Asia Economy Reporter Oh Ju-yeon] The Democratic Party of Korea and the government announced that they will manage the household loan growth rate next year at 4-5% and take measures to ensure that real demand loans such as jeonse and group loans are not suspended.

On the 10th, Park Wan-joo, the Policy Committee Chair of the Democratic Party, said to reporters after a closed-door household debt meeting between the party and government held at the National Assembly Members' Office Building, "We will manage loans for ordinary citizens without any setbacks."

Chairman Park explained, "The household loan growth rate this year, including jeonse loans, is roughly in the low 7% range. When managing it at 4-5% next year, the total loan volume will increase by about 87 trillion won compared to this year." He added, "Although the total percentage will decrease compared to this year, the absolute amount will increase because the base is larger."

Regarding whether the second phase of the Debt Service Ratio (DSR) regulation, which will be implemented from next year, will proceed as planned but apply different methods for real demand borrowers among ordinary citizens, he answered, "Yes."

Concerning compensation for losses of small business owners, he said, "Since a revision bill regarding personnel limits has been submitted, the relevant ministries will discuss it and start deliberations in the temporary National Assembly session," adding, "The government has also been asked to clarify its position."

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