Kim Byunghwan "Local DSR Regulation Easing Causes Policy Trust Issues"...Effectively Rejected

National Assembly Legislation and Judiciary Committee Convenes on the 18th
Chairman Kim Byunghwan of the Financial Services Commission Opposes Easing Local DSR Regulations

Kim Byung-hwan, Chairman of the Financial Services Commission. Photo by Jo Yong-jun

Financial Services Commission Chairman Kim Byung-hwan expressed opposition to the political demand to ease the Debt Service Ratio (DSR) regulations to revitalize the sluggish local real estate market.

On the 18th, Chairman Kim attended the National Assembly's Legislation and Judiciary Committee plenary session and responded to People Power Party lawmaker Kim Sang-hoon's assertion that easing DSR regulations is necessary to revive the local real estate market by saying, "All ministries share the recognition that the local construction market is struggling and that support measures are needed," but added, "It is necessary to try other more effective policies first."

Chairman Kim said, "When listening to field reports, there is doubt whether unsold local real estate is due to DSR regulations," and added, "We have gone through a difficult process to establish the DSR system, and if we exclude local areas this time, it will undermine the credibility of the policy."

He also retorted, "Did you not see the market criticism when the second phase of DSR application was postponed by two months last year?"

In response to Chairman Kim's remarks, lawmaker Kim repeatedly urged the introduction of effective measures. Lawmaker Kim emphasized, "Construction has a very significant impact on the economy, so now is the golden time to present countermeasures."