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Korea Eases Property Rules With Household Debt at Record

South Korea will loosen home-loan restrictions, risking worsening a record household debt problem as President Park Geun Hye seeks to revive a stagnant property market to boost Asia’s fourth-biggest economy.

The loan-to-value ratio will be lifted to 70 percent for all transactions, while the debt-to-income ratio will be raised to 60 percent, a 10 percentage point bump for buyers in Seoul, the largest market, the finance ministry said today. Younger people will also be allowed to borrow against a longer period of future income.