Kim Yong-beom, Deputy Minister of Economy and Finance, "Concerns Over Borrowers' Debt Repayment Ability Deterioration if COVID-19 Prolongs... Financial Firms Must Strengthen Loss Absorption Capacity Themselves"

Macroeconomic and Financial Meeting

KOSPI Hits Highest Point in 2 Years and 10 Months... Corporate Fundraising Conditions Also Relatively Favorable
However, Uncertainty Grows Due to COVID-19 Spread
Caution Needed Against COVID-19 Complacency Amid Vaccine and Treatment Expectations

Kim Yong-beom, the 1st Vice Minister of the Ministry of Economy and Finance, is delivering opening remarks at the Macroeconomic and Financial Meeting held on the 24th at the Industrial Bank of Korea headquarters in Yeongdeungpo-gu, Seoul. Photo by Kim Hyun-min kimhyun81@

[Sejong=Asia Economy Reporter Joo Sang-don] Kim Yong-beom, First Vice Minister of the Ministry of Economy and Finance, stated on the 24th, "From the perspective of proactive risk management, we will encourage financial companies to strengthen their capacity to absorb losses on their own."

On the same day, Kim held a macroeconomic financial meeting at the Korea Development Bank headquarters and said, "If the COVID-19 situation prolongs, it cannot be ruled out that the financial soundness of financial companies may deteriorate due to worsening debt repayment ability of borrowers."

He assessed that the financial market is showing stability. Kim said, "In the domestic financial market, supported by expectations of additional U.S. economic stimulus, successful clinical trial news of COVID-19 vaccines, and expectations of improved performance of domestic companies, the KOSPI recorded 2,602 points the previous day, marking an all-time high in 2 years and 10 months. The short-term money market is seeing an increase in issuance of commercial papers (CP) and short-term bonds, and CP rates (final bid yield) are also maintaining stability."

However, he expressed concern that uncertainty is increasing due to the recent spread of COVID-19 domestically and internationally. He said, "Due to strengthened lockdown measures in major countries, export conditions cannot be assured. Although the Consumer Sentiment Index (CSI) announced today rose sharply for two consecutive months, it is not impossible that it may shrink again if the COVID-19 spread intensifies."

Kim urged special caution as the domestic quarantine situation has entered the initial stage of the third wave, standing once again at a critical juncture. He emphasized, "As the COVID-19 crisis prolongs, quarantine fatigue is accumulating, and on the other hand, there is concern about COVID-19 complacency due to expectations for vaccines and treatments. We must be vigilant against negligence and forgetfulness and once again recall the importance of adhering to basic quarantine rules."

Regarding next year's economic policy direction, he said, "We will faithfully include proactive response measures to prepare for economic and social structural changes after COVID-19, as well as measures to boost economic vitality for economic recovery."

This content was produced with the assistance of AI translation services.