The Financial Services Commission held a meeting on household debt management with related authorities and industry groups on August 21, chaired by FSC Secretary General Kwon Dae-young. The outstanding balance of household loans has been rising recently led by mortgage loans from banks and policy loans for housing. At the meeting, authorities discussed the following measures to effectively control the pace of household debt growth in the second half of 2024. First, from September 1, the second phase stressed debt service ratio (DSR) rule will take effect. A stress rate of 0.75%p will be additionally applied on mortgage loans and credit loans from banks and mortgage loans from nonbanks. However, mortgage loans issued by banks for houses in the Seoul metropolitan area will be subjected to an increased stress rate of 1.20%p. Second, for household loans issued from September 1, banks will be required to calculate DSR on all types of household loans for their own internal management purposes. This will help the banking sector to more closely monitor and examine relevant data on DSR. Third, in the future, authorities will consider implementing additional policy measures, such as expanding the application of DSR on other types of loans and increasing mortgage loans' risk weight for banks, after looking at household debt growth and housing market conditions.