Financial watchdog warns of dangers posed by massive household debt

South Korea’s Financial Regulator is
warning the soundness of household debt in the country could become vulnerable
fast due mainly to a dangerous combination of greater borrowing for
real-estate speculation and tumbling house leasing prices our Kim Jiyeon has
more at a meeting late last week the chairman of the Financial Services
Commission Chair John Gruelle pointed to the size of the country’s household debt
interest rate hikes and loans due to long-term home leases oriT owns a loans
as a major risk factors facing the economy Chon say is a unique real si an
arrangement in Korea where tenants live in a house or apartment for two or more
years after paying a large lump-sum deposit which must be returned in full
upon the end of the term chair warned the country’s chances system is
increasingly becoming insolvent due to a combination of falling transit prices
and expected rate hikes household debt estimated more than 1.3 trillion u.s.
dollars is placing an enormous burden on the financial system and the economy we
have to prepare for risks such as cases of lease holders not being able to pay
back the deposits due to plunging tongzi prices the average price of chance–a in
Seoul started to fall in November of last year but rural regions have seen
tons at prices some since April 2017 the financial watchdog says I’ll come up
with countermeasures this year that will limit the issuance of mortgage loans for
speculative real sa practices while encouraging corporate investments with
this ches said the government aims to slow the growth of household debt to
about five percent by the end o 2021 Kim Jiyeon Arirang news

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