The implementation of stricter rules on household loans in South Korea has been delayed until September 1st due to various risk factors in the financial market. Originally planned for the beginning of next month, the second phase formula for floating rate stress debt service ratio (DSR) will now be put into effect at the start of September. The DSR measures the proportion of a borrower's yearly income that goes towards paying off principal and interest, acting as a cap on aggregate lending. The first phase formula, implemented in February, limited the amount of loans a person could take out to around 40 percent of their annual income. The second phase steps, once implemented, will further reduce the borrowing capacity of individuals and households. The decision to postpone the second phase implementation of DSR was made in consultation with related organizations to ensure a smooth transition in the market. The government aims to address challenges faced by small business owners and low-income earners while also working towards a soft landing for real estate project financing loans. The new DSR formula is scheduled to be fully implemented from the beginning of next year.