ID :
113392
Thu, 03/25/2010 - 10:05
Auther :

Lee calls for closer monitoring of household debt


SEOUL, March 25 (Yonhap) -- President Lee Myung-bak said Thursday that his
government should more closely monitor the pace of household debt growth, adding
that chances are low that the problem will have any immediate impact on the
health of the Korean economy, according to Lee's office.

Presiding over the weekly emergency economic policy meeting, Lee also ordered a
thorough review of trends in the country's housing prices and construction
sector, which heavily affect the financial health of households.
"Chances are low that the current level of household indebtedness will lead to
financial instability but (the government) should closely monitor the speed of
household debt growth and its impact on households and financial circles," Lee
was quoted as saying by Kim Eun-hye, spokeswoman for the presidential office,
Cheong Wa Dae.
Thursday's session, the 52nd of its kind, focused on reviewing the household debt
problem in South Korea, one of Asia's leading economies, as concerns are mounting
that rapidly growing household debt could weigh on the nascent economic recovery.
A household here had an average of 43 million won (US$38,000) in liability last
year, up 1.2 million won from 2008, according to data by the Bank of Korea.
Economic policymakers say household debt is still at a manageable level, as the
country's housing prices remain stable and banks are in relatively good financial
health. But analysts have said the speed of household debt growth is worrisome.
The president added, "In particular, the government should take a more wary look
at the trends in house prices and the construction industry since real estate
accounts for a big part of household debt."
lcd@yna.co.kr
(END)

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