SEOUL, Sept 10 (Askume) – The head of South Korea’s financial regulator expressed concern on Tuesday about a rapid rise in household debt, saying such financial imbalances could translate into systemic risks.
“There are concerns that if housing prices correct, financial imbalances will increase and soundness will deteriorate, which could translate into systemic risks,” Lee Fook-hyun said at a meeting with local banks.
South Korea has one of the highest household debt-to-financial ratios in the world, with more than 60% of loans tied to mortgages from local banks.
