Bank of Korea Governor Kim Choong-soo, right, holds a meeting with chief executives at the BOK’s headquarters in central Seoul yesterday. [NEWSIS]
Korea’s central bank governor cautioned companies, individuals and the government yesterday on the danger of taking on an unreasonable level of debt.
During a meeting with corporate executives yesterday, Bank of Korea Governor Kim Choong-so said, “corporations, the government and individuals should pay close attention to how much debt they take on.”
The BOK’s 25 basis point rate hike last Friday will increase interest payments for debt holders.
Kim also commented on Korea’s mounting household debt.
“We should keep an eye on those who take out loans that have no ability to pay them back.”
Yet he expressed confidence that Korea’s record household debt – which recently exceeded the 800 trillion won mark – is manageable.
A number of the country’s largest conglomerates were represented at the meeting, including Kim Young-chul, Dongkuk Steel president & CEO; Alfred S. Koh, Samsung SDS CEO; Huh Chang-soo, GS Engineering & Construction chairman; Huh Myung-soo, GS E&C president & CEO; and Yoon Young-doo, Asiana Airlines chief executive.
“The housing market doesn’t look so optimistic,” said GS E&C’s chairman, blaming it on financial authorities’ tight management of project financing loans, causing builders to suffer from unsold apartments.
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