April 25, 2024

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[THE INVESTOR] Financial authorities will spare no effort to keep household debt in check and ensure any increase does not hamper Korea’s economy, the head of the top financial regulator said on Oct. 25.

Choi Jong-ku, chairman of the Financial Services Commission, made the remarks at a forum, a day after the government announced a fresh set of measures to curb the growth of household debt.

“We will implement the comprehensive measures for household debt management without setbacks,” the policymaker said.

Choi said a short-term economic stimulus, led by debt-fueled asset bubbles, is not sustainable any more under the government’s financial policy. 

He also reiterated that financial authorities will encourage banks and other financial institutions to provide liquidity for small and medium-sized firms and start-ups, rather than households.

Household debt stood at 1,388.3 trillion won (US$1.23 trillion) at the end of June, up 10.4 percent from a year earlier, according to the BOK.

By Alex Lee and newswires (alexlee@heraldcorp.com)