Mortgage Rules in Seoul and Gyeonggi: How LTV, DSR and Stress Rates Set the Ceiling
A mortgage limit in South Korea is not set by a single number. Collateral value filters it once, income filters it again, and a hypothetical interest rate filters it a third time. What remains after all three is the amount a borrower can actually draw. Two policy packages, announced in June and October 2025, tightened each of those filters in turn. The design intent is explicit. The government sought to break the loop in which loan capacity expands automatically as house prices rise, and to build a buffer into the assessment so that limits do not surge when rates fall. This article takes that structure apart step by step. All won amounts are stated at their original value, with an approximate US dollar equivalent converted at KRW 1,397.7 per dollar, the Seoul market level reported on 19 August 2026. Table of Contents Why the Rules Were Designed This Way Requirements and Structure by Lender Tier What the Data Shows on Rates and Limits How LTV, DSR and the Stress Rate Work in Sequen...