[
THE INVESTOR] The financial regulator said on May 30 it will apply tighter rules for mortgage loans to all mutual savings institutions starting next month.
The tighter rules, which already have been applied to retail banks and other depository institutions, require borrowers to repay both interest and a part of principal until maturity.
A total of 1,925 mutual savings institutions and credit units with assets below 100 billion won (US$89 million) each will have to abide by the tighter rules starting June 1, the Financial Services Commission said in a statement.
The rules were applied to mutual savings institutions and credit unions with assets worth more than 100 billion won in March.
By Alex Lee and newswires (
alexlee@heraldcorp.com)