ID :
203000
Tue, 08/23/2011 - 13:37
Auther :
Shortlink :
https://oananews.org//node/203000
The shortlink copeid
S. Korean regulator meets with Hong Kong investors
HONG KONG, Aug. 23 (Yonhap) -- South Korea's top financial regulator held a meeting with investors in Hong Kong Tuesday in a bid to promote government efforts to tide over the global market turmoil and draw in more foreign investment.
"I explained to them how the nation is pulling through the recent volatility of the global markets and dispelled lingering jitters among some investors over the fiscal soundness of the government after state-led economy-stimulus measures." Financial Supervisory Service (FSS) Gov. Kwon Hyouk-se said.
Kwon arrived in Hong Kong earlier in the day to hold the roundtable meeting with representatives from investment banks such as Morgan Stanley, UBS, Goldman Sachs, Deutsche Bank and HSBC.
"While most participants recognized the fundamentals of the South Korean economy are solid, they raised some questions," he told reporters as he debriefed them on the two-hour meeting. "The most common one was whether South Korea had the capability to deal with household debt and how the debt will affect the South Korean banks."
As of the end of June, the country's household debt reached a record high of 876.3 trillion won (US$809 billion), raising alarm bells.
"Restrictions on home-backed loans through a cap on the debt-to-income (DTI) and the loan-to-value (LTV) ratios will curb risks that could hurt the soundness of banks," Kwon said in response to such concerns.
The DTI ratio refers to the percentage of monthly gross income that goes toward paying debts, while the LTV ratio measures a homeowner's outstanding debt on a property to the market value of that property.
The country "will further tighten banks' loan-to-deposit ratios, if it is needed," he said.
The governor said the FSS will consider encouraging the government, the Seoul bourse operator and South Korean firms to jointly hold investor relations meetings overseas, as many foreign investors perceive South Korean companies as being undervalued on the global markets.
ygkim@yna.co.kr
"I explained to them how the nation is pulling through the recent volatility of the global markets and dispelled lingering jitters among some investors over the fiscal soundness of the government after state-led economy-stimulus measures." Financial Supervisory Service (FSS) Gov. Kwon Hyouk-se said.
Kwon arrived in Hong Kong earlier in the day to hold the roundtable meeting with representatives from investment banks such as Morgan Stanley, UBS, Goldman Sachs, Deutsche Bank and HSBC.
"While most participants recognized the fundamentals of the South Korean economy are solid, they raised some questions," he told reporters as he debriefed them on the two-hour meeting. "The most common one was whether South Korea had the capability to deal with household debt and how the debt will affect the South Korean banks."
As of the end of June, the country's household debt reached a record high of 876.3 trillion won (US$809 billion), raising alarm bells.
"Restrictions on home-backed loans through a cap on the debt-to-income (DTI) and the loan-to-value (LTV) ratios will curb risks that could hurt the soundness of banks," Kwon said in response to such concerns.
The DTI ratio refers to the percentage of monthly gross income that goes toward paying debts, while the LTV ratio measures a homeowner's outstanding debt on a property to the market value of that property.
The country "will further tighten banks' loan-to-deposit ratios, if it is needed," he said.
The governor said the FSS will consider encouraging the government, the Seoul bourse operator and South Korean firms to jointly hold investor relations meetings overseas, as many foreign investors perceive South Korean companies as being undervalued on the global markets.
ygkim@yna.co.kr
