Household debt, inflation cited as biggest risks to financial system: BOK survey
Bank of Korea in downtown Seoul / Korea Times file
One out of five financial experts cited high household debt and inflationary buildup as the biggest risks to the financial system, a survey showed Wednesday.
According to the survey of 80 experts working in the financial sector by the Bank of Korea, 16 people mentioned the two as the biggest threats to the financial system.
Of those surveyed, 7 percent chose uncertainty over global monetary policy, including the U.S. Federal Reserve's plan for the tapering of stimulus measures.
A possible deterioration of asset soundness of financial institutions amid rising interest rates and the rollback of coronavirus-related state support came next with 5 percent of those polled saying so.
Four percent cited a slowing recovery in major economies.
Household debt has emerged as a major risk to South Korea's economy and worries over inflation have been growing.
In the first quarter, the household-gross domestic product ratio stood at 104.2 percent. The country's consumer prices grew 3.7 percent last month, the fastest rise in about 10 years.
The Bank of Korea hiked its key interest rate by a quarter percentage point last month to 1 percent, ending nearly two years of the zero rate range put in place to prop up the pandemic-hit economy. (Yonhap)