ID :
207225
Thu, 09/15/2011 - 05:16
Auther :
Shortlink :
https://oananews.org//node/207225
The shortlink copeid
S. Korea mulls more steps to curb household debt: regulator
(ATTN: ADDS more info in last 3 paras)
SEOUL (Yonhap) - South Korea's top financial regulator said Thursday that the government is considering additional measures to curb growing household debt in a bid to shield the economy from high indebtedness.
South Korea is grappling with growing household debt, which reached 876.3 trillion won (US$825.1 billion) as of end-June. By hurting domestic demand, household debt has become the main constraint for the local economy.
"If necessary, the government will draw up additional steps to stem household debt in a bid to lead household debt to make a soft landing at a stable level," Kim Seok-dong, chairman of the Financial Services Commission (FSC), said in a speech for a forum.
In June, the government unveiled a set of measures to curb rising household debt by tightening banks' loan-to-deposit ratios and mending banks' lending practices. But despite such efforts, home loans extended their gains on the back of lending from non-bank institutions.
The financial watchdog earlier said that it is considering measures to curb an excessive rise in household loans extended by non-bank institutions, but it added that efforts to tackle household debt should be made over the long haul in a way that doesn't shock the overall economy.
Meanwhile, Kim said that South Korea has enough strength to weather the ongoing jitters over the global economic slowdown and Europe's debt fears.
"Korea cannot be free from shocks stemming from changes in global economic situations, but the Korean economy has the strength to withstand (the current situations)," Kim said, adding that the country's fiscal strength and room to manage its monetary policy has raised its response capacity.
The country's key stock index plunged 3.52 percent on Wednesday as mounting fears over a Greek default spurred a selling spree. But it gained some composure on Thursday as the broader stock market rose more than 2 percent in morning trade.
SEOUL (Yonhap) - South Korea's top financial regulator said Thursday that the government is considering additional measures to curb growing household debt in a bid to shield the economy from high indebtedness.
South Korea is grappling with growing household debt, which reached 876.3 trillion won (US$825.1 billion) as of end-June. By hurting domestic demand, household debt has become the main constraint for the local economy.
"If necessary, the government will draw up additional steps to stem household debt in a bid to lead household debt to make a soft landing at a stable level," Kim Seok-dong, chairman of the Financial Services Commission (FSC), said in a speech for a forum.
In June, the government unveiled a set of measures to curb rising household debt by tightening banks' loan-to-deposit ratios and mending banks' lending practices. But despite such efforts, home loans extended their gains on the back of lending from non-bank institutions.
The financial watchdog earlier said that it is considering measures to curb an excessive rise in household loans extended by non-bank institutions, but it added that efforts to tackle household debt should be made over the long haul in a way that doesn't shock the overall economy.
Meanwhile, Kim said that South Korea has enough strength to weather the ongoing jitters over the global economic slowdown and Europe's debt fears.
"Korea cannot be free from shocks stemming from changes in global economic situations, but the Korean economy has the strength to withstand (the current situations)," Kim said, adding that the country's fiscal strength and room to manage its monetary policy has raised its response capacity.
The country's key stock index plunged 3.52 percent on Wednesday as mounting fears over a Greek default spurred a selling spree. But it gained some composure on Thursday as the broader stock market rose more than 2 percent in morning trade.
