The Financial Services Commission announced the government’s measures to improve structural soundness of household debt on February 27, Thursday.
During a joint press briefing with the Ministry of Strategy and Finance, Ministry of Land, Infrastructure and Transport, and Financial Supervisory Service, FSC Chairman Shin Je-Yoon emphasized the necessity to tackle household debt problem in order to realize President Park’s three-year plan for economic innovation.
To reduce the household debt, the FSC plans to reduce household’s debt-to-disposable-income ratio by 5%p by 2017.
The measures include three key targets:
First, the government will improve the maturity and interest-rate structure of the housing mortgage loans.
Second, the government will relieve the debt burden of small business owners and low-income households.
Third, the government will manage household debt from non-banking sector.
In the closing Chairman Shin mentioned, “The measures announced today reflect the government’s firm determination to restore household’s financial health.”
click to read press release -> http://www.fsc.go.kr/downManager?bbsid=BBS0048&no=89222