Deputy Minister Ki Jae: "If Household Loans Remain Unstable, Necessary Measures Will Be Taken"

Macroeconomic and Financial Meeting on the 14th

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] Kim Yong-beom, First Vice Minister of the Ministry of Economy and Finance, said on the 14th, "The government is monitoring household loan trends, including credit loans, and will take necessary measures if household loan instability factors persist."

At the macroeconomic and financial meeting held at the Seoul Banking Hall on the same day, Vice Minister Kim stated, "From the perspective of managing medium- to long-term financial sector risks, we are closely watching recent household loan trends."

The increase in household loans across the entire financial sector in September was 10.9 trillion won, down from 14.3 trillion won in the previous month. The increase in bank credit loans was 2.9 trillion won, a decrease from 5.2 trillion won in the previous month, thanks to banks' own management efforts.

He predicted, "The recovery process of our economy will be influenced by various variables such as the development of the novel coronavirus disease (COVID-19) and domestic and international economic conditions." He added, "Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), likened the global economy to facing a difficult uphill climb."

He also stated, "To enable the Korean economy to emerge as a leader in the post-COVID era, the government will faithfully fulfill its role as a Sherpa in the arduous process of climbing a long uphill path."

Regarding the recent global financial market, he forecasted, "Despite uncertainties related to the U.S. presidential election, risk aversion sentiment has somewhat eased as major countries' stock prices and government bond yields have risen due to expectations of an agreement on additional U.S. stimulus measures."

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