Son Byung-du, Vice Chairman of FSC, "Concerns Over Household Loans Flowing into Specific Asset Markets"
Son Byung-du, Vice Chairman of the Financial Services Commission, is conducting a Financial Risk Response Team meeting via a non-face-to-face video conference at the Government Seoul Office in Jongno-gu, Seoul on the 23rd.
View original image[Asia Economy Reporter Jo Gang-wook] Sohn Byung-doo, Vice Chairman of the Financial Services Commission, said on the 23rd, "There are concerns about whether the increase in household loans is excessively flowing into specific asset markets," adding, "If the instability factors of household loans persist, we plan to prepare necessary management measures."
Vice Chairman Sohn made these remarks during a video conference of the Financial Risk Response Team held that day, emphasizing, "We will closely monitor the trend of household loans due to the recent surge in unsecured loans."
Regarding the recent rapid increase in unsecured loans, he said, "It is difficult to analyze the exact causes of the increase because it is hard to verify the purpose of the loans," but estimated, "The increased demand for living expenses from individuals and sole proprietors who have been struggling due to COVID-19 has contributed to some extent, and some of it may have flowed into asset markets."
He added, "There is a tendency for large loans centered on high-income and high-credit borrowers to increase somewhat rapidly recently," and urged, "Banks and other financial institutions should make efforts to manage the soundness of household loans by, for example, checking whether they sufficiently consider the borrower's repayment ability during loan screening."
Vice Chairman Sohn also pointed out the issue of individual investors' 'debt investment' (bit-tu).
Hot Picks Today
Taking Annual Leave and Adding "Strike" to Profiles, "It Feels Like Samsung Has Collapsed"... Unsettled Internal Atmosphere
- There Is a Distinct Age When Physical Abilities Decline Rapidly... From What Age Do Strength and Endurance Drop?
- "One Comment Could Lead to a Report": 86% of Elementary Teachers Feel Anxious; Half Consider Resignation or Career Change
- "After Vowing to Become No. 1 Globally, Sudden Policy Brake Puts Companies’ Massive Investments at Risk"
- On Teacher's Day, a Student's Gifted Cake Had to Be Cut into 32 Pieces... Why?
He said, "There are many concerns about the recent rapid increase in stock investments through loans by individual investors, so-called 'bit-tu,' and the direct investment in overseas stocks, which have low information accessibility and may be exposed to foreign exchange risk," adding, "I hope everyone will once again keep in mind the risks that can arise from reckless stock investments through loans or overseas investments made without sufficient information."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
