Hong Nam-ki "Concerns Grow Over Real-Financial Gap... Caution Advised on Asset Concentration and Rapid Debt Increase"

January 5th '2021 Pan-Financial New Year's Meeting' New Year's Address

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, said, "Despite the COVID-19 crisis, the financial market has remained stable without shaking, but concerns about the gap between the real economy and finance are growing."

In his New Year's address at the '2021 Pan-Financial New Year Meeting' announced on the 5th, Deputy Prime Minister Hong stated, "We will pay special attention to and carefully manage the possibility that the rapidly increased liquidity may cause concentration in asset markets and a sharp rise in debt."

He added, "Considering that the COVID-19 crisis is still ongoing, we will contemplate a 'orderly normalization' so that future financial support normalization does not undermine financial stability and can achieve a soft landing."

Deputy Prime Minister Hong also urged cooperation and roles from the financial sector. "Above all, I ask the financial sector and financial professionals to take the lead," he said, adding, "I ask you to promote innovation and stability within finance itself."

He further assessed, "To overcome the COVID-19 crisis and move toward a recovery path, financial support backing the real economy this year is very important."

He continued, "I ask for active support so that tailored financial support programs, such as special support programs for tenants in restricted business sectors, can become a rain in the drought for small business owners." He then stated, "Let all economic actors, including the financial sector, renew their determination and unite their efforts to surely overcome the crisis, recover the economy, and achieve economic rebound this year."

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