Bank of Korea points to real estate as a factor in increasing household debt
“Consistent cooperation efforts between policy authorities are needed.”
“Unexpected side effects” pointed out as a policy mismatch.
“Possibility of a soft landing in the real estate market ↑… future response is important.”
[앵커]
The Bank of Korea identified real estate as a key factor in financial imbalances, including increased household debt.
To solve this problem, he emphasized that when introducing related policies, they must be implemented consistently over a long period of time.
Reporter Eom Yun-ju reports.
[기자]
The day after the financial authorities announced various regulations to tighten the rapidly increasing household loans, the Bank of Korea also released a monetary and credit policy report and diagnosed the current financial situation.
First, real estate was identified as a key factor in financial imbalance, such as the current increase in household debt.
Household debt has increased rapidly due to the government’s relaxation of real estate loan regulations and the market’s expectations of rising housing prices.
In particular, he pointed out that, unlike major countries, household debt continues to increase without debt reduction or repayment, reaching a level that undermines macroeconomic and financial stability.
At the same time, it was analyzed that current housing prices are still expensive compared to income and other basic economic conditions.
To this end, the Bank of Korea emphasized the importance of ‘consistency’ when implementing related policies.
In our case, there were voices of reflection that there had been a lack of cooperation between policies.
For this reason, he repeatedly emphasized that consistent cooperative efforts between policy authorities are needed in the future.
However, he avoided an answer to the point raised by some that there was a policy mismatch between the financial authorities and the monetary authorities.
[이상형 / 한국은행 부총재보 : 그동안 한 10여 년간 통화 정책과 거시건전성 정책이 운영되는 과정에서 금융 불균형이 완화되지 않고 누증되어 왔다는 건 사실인 것 같습니다. 이와 같이 좀 다른 예상치 못한 부작용이 있을 수 있는데….]
Instead, the current increase in household debt was seen as an unexpected side effect, and it was replaced by saying that future responses are important as the possibility of a soft landing in the real estate market increases.
The Bank of Korea, which announced that it will closely examine the factors contributing to the increase in household loans, plans to maintain a tightening policy for a considerable period of time with a focus on price stability and determine the need for additional interest rate increases.
This is YTN Eom Yun-ju.
Video editing: Jeon Jeon-in
Graphics: Park Yoo-dong
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2023-09-14 10:56:00
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