KOR
▲ Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol speaks at a market situation inspection meeting held at the Korea Federation of Banks in Jung-gu, Seoul, on the 21st.
Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol announced today (the 21st) that the government will prepare and promptly release a support plan for vulnerable borrowers to alleviate the debt burden of small business owners, ordinary citizens, and vulnerable groups.
Presiding over a market situation inspection meeting at the Korea Federation of Banks in Jung-gu, Seoul, earlier that morning, Deputy Prime Minister Koo diagnosed that long-term government bond yields in major economies have risen to decades-high levels, while interest rates in the domestic bond market have also risen, centered on ultra-long-term bonds, increasing the debt burden on households and self-employed individuals.
He stated that the government will support the rebound of struggling small business owners and individuals through active debt restructuring while expanding financial support for small and medium-sized enterprises, ordinary citizens, and vulnerable borrowers.
Outlining the government's direction in responding to rising interest rates, Koo noted that the government will continuously monitor the issuance and distribution conditions of the treasury bond market while closely managing the situation to minimize the impact on the real economy, such as corporate financing costs and household interest burdens.
Regarding the won-dollar exchange rate, which had climbed to the 1,550-won range early last month but recently re-entered the 1,300-won range for the first time in 11 months, he remarked, "As both upward and downward factors for the exchange rate coexist, we will respond to market volatility without lowering our guard."
He also noted that South Korea's total household debt in the second quarter exceeded 2 trillion won for the first time in history.
"The ratio of household debt to GDP actually fell sharply to 85.3% in the first quarter," Deputy Prime Minister Koo said. "However, given that the household debt ratio remains at a level that is not low compared to major economies, we will manage it without lowering our guard and carefully support genuine demanders so they do not face funding bottlenecks."
Attendees at the meeting included Financial Services Commission Chairman Lee Eok-won, Financial Supervisory Service Governor Lee Chan-jin, and Bank of Korea Deputy Governor Park Jong-woo.
The Ministry of Economy and Finance stated that the participants shared the view that South Korea's external soundness is more solid than ever, considering factors such as the record-high current account surplus of $191 billion for the first half of the year.
(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.
