Pursuits
Korea Encourages Stricter Loan Screening Amid Record Debt
- Government focus on collective loans by new apartment buyers
- Accelerating pace of household debt concern for policy makers
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South Korea’s government said it will introduce risk management practices for some types of real estate loans as household debt has climbed to a new record.
The government will encourage banks to impose stricter loan screening for so-called collective loans by buyers of new apartments, which have led recent mortgage growth, according to a joint statement from government ministries on Thursday.