President Yoon on High Interest Rate Concerns: "Measures to Ease Repayment Burden Will Be Implemented"

Yoon "US Interest Rate Hike Expected... Global Economy Contracting"
"No Need to Worry About External Fiscal Soundness... Will Manage It"

[Image source=Yonhap News]

[Asia Economy Reporter Ki-min Lee] On the 15th, President Yoon Seok-yeol announced that he would implement financial policies to stabilize people’s livelihoods, such as loan conversion programs and maturity extensions, in response to concerns about domestic interest rate hikes due to the possibility of an ultra step (1% interest rate hike) by the U.S. Federal Reserve (FED).

President Yoon said to reporters he met while arriving at the Yongsan Presidential Office that morning, "To stabilize the livelihoods of ordinary people who bear a heavy burden of financial debt, we will implement measures to switch from high interest rates to low or fixed interest rates, extend maturities to lengthen repayment periods, and reduce repayment burdens by quarter and by repayment period."

Regarding the prospect of the U.S. taking an ultra step, President Yoon stated, "Currently, the U.S. consumer price index has risen 8.3% compared to the same period last year, and interest rate hikes to curb inflation are fully expected. Therefore, economies and markets worldwide are shrinking significantly."

He added, "The general consensus is that the priority is to first curb inflation, which causes a decline in the real wages of ordinary people. Accordingly, our government has focused on about 20 major items of Chuseok seasonal products, supplying large quantities to the market through various means to stabilize prices. We are making efforts to control inflation through market-friendly methods," introducing the government’s price stabilization policy situation.

He continued, "However, our current account balance, foreign exchange reserves, and external financial soundness are not yet at a level that should worry the public," emphasizing, "The government and companies will work together to manage risks, and the government will take special care of the livelihoods of ordinary people."

When asked by a reporter about how the welfare system would be changed amid President Yoon’s recent visits to livelihood sites emphasizing welfare for the vulnerable, he said, "Comprehensively reforming the system could cause various confusions in the short term. We have clearly stated that we will avoid political personnel changes or policy shifts aimed at political transitions as much as possible, and will steadily take care of parts that can help the real lives of our people and ordinary citizens."

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