[New Year's Address] Go Seung-beom "Household Debt Growth to Normalize at 4-5% Next Year"

[Image source=Yonhap News]

[Asia Economy Reporter Jin-ho Kim] Ko Seung-beom, Chairman of the Financial Services Commission, stated, "We will normalize the household debt growth rate to 4-5% next year."

In his "2022 New Year's Address" announced on the 31st, Chairman Ko said, "We will lay the foundation for harmonizing the three tasks of financial stability, financial development, and economic growth."

He first emphasized the importance of flawless financial stability. Chairman Ko said, "If financial stability is shaken, economic recovery and financial development will also become difficult," adding, "Above all, we will consistently strengthen the management of household debt, which is the biggest risk factor for the economy."

He stressed, "While based on total volume management, we will strengthen system management and increase the proportion of installment repayment and fixed-rate loans," and "We will also implement protective measures for low-income and vulnerable groups." He added, "Regarding the rapidly increasing loans to individual business owners, we will calmly guide a soft landing by checking the borrower's situation."

Regarding financial development, he said, "We will broadly allow financial companies such as banks and insurance companies to enter new businesses and operate various business models." He added, "To accelerate the digital transformation of finance, we will actively promote the establishment of AI utilization infrastructure, improvement of data combination systems, and introduction of MyData platforms."

Through strengthening real economy support, he said they will drive economic growth. Chairman Ko emphasized, "Next year, we will supply policy finance worth 200 trillion won." He also said they will strengthen tailored support for vulnerable borrowers, including supplying 10 trillion won in policy finance for low-income households and expanding the scope of credit recovery support.

Chairman Ko said, "There is a prevailing outlook that market volatility and uncertainty may increase next year," adding, "We will not lower our guard and will monitor domestic and international market trends to prepare for the worst-case scenario."

He added, "We will further solidify the cooperation system with related organizations such as the Bank of Korea and the Financial Supervisory Service."

Furthermore, he said they will seek harmony and balance among policy goals. As a representative example, he stated that while supporting Big Tech and FinTech to lead innovation and competition, they will establish minimum regulations to ensure financial stability and protect financial consumers.

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