[2021 National Audit] Jeong Eun-bo "Concerns Over Credit Loan Defaults... Strengthening Monitoring"

Jeong Eun-bo, Governor of the Financial Supervisory Service, is attending the National Assembly's inspection of the Financial Supervisory Service held by the National Assembly's Political Affairs Committee on the 7th, providing a work report. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Jin-ho Kim] Jeong Eun-bo, Governor of the Financial Supervisory Service, stated on the 7th, "There is a possibility that credit loans could become non-performing when financial market conditions reverse."

Governor Jeong made this remark during the Financial Supervisory Service's audit at the National Assembly's Political Affairs Committee, responding to a question from Hong Seong-guk, a member of the Democratic Party of Korea, who asked if credit loans could become a trigger for financial market risks.

Governor Jeong said, "Recently, the credit loan limit was reduced to the level of annual income," adding, "Credit loans are short-term loans and it is important to note that they are unsecured."

He continued, "When financial market conditions reverse, we will review the risky areas by industry and market," and added, "We will proactively monitor areas that could be impacted."

Governor Jeong also reiterated his recent emphasis on the financial market 'perfect storm.' He said, "Various environmental factors can amplify the force of a typhoon and affect the macroeconomy," adding, "The low interest rate environment and the US interest rate hikes could be causes."

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