New FSS chief warns of 'perfect storm' amid lingering financial risks
Financial Supervisory Service Governor Jeong Eun-bo arrives at the FSS headquarters in Yeouido, Seoul, Friday. YonhapBy Lee Kyung-min Korea should brace itself for a “perfect storm” of the economy spiraling out of control due to a mixture of financial risks from corporate and individual insolvencies and asset price bubbles brought on and exacerbated by the pandemic-triggered expansionary government policies, the country's top financial supervisor said Friday. Financial Supervisory Service Governor Jeong Eun-bo said that the economic and financial conditions are far from warranting a drawdown in emergency relief packages with the recovery in the real economy still being distant, a challenge compounded by the need to curb the rapid rise in debt in the private sector. “The COVID-19 pandemic has yet to be overcome,” Jeong said at his inauguration ceremony in the FSS headquarters in Yeouido, Seoul.Excessive liquidity in the market pumped in as part of quantitative easing and low-interest rates around the world are emerging as new risk factors in the financial marke
