ID :
156953
Wed, 01/12/2011 - 20:08
Auther :

Watchdog sets up task force on household debts


SEOUL, Jan. 12 (Yonhap) -- South Korea's financial regulator said Wednesday it
has launched a task force in a bid to curb excessive household loan growth, a
major economic risk factor.
The Financial Services Commission (FSC) said the task force, composed of
officials from the regulator, the finance ministry, research institutes and
commercial banks, plans to draw up measures by March to ease sharp growth in
household borrowing seen in recent years.
The committee will also push for a law revision in the second half of this year
to tame the steep household debt growth, if necessary, the FSC said.
Its countermeasures will address households' ability to pay back borrowing and
excessive increases in household loans, the regulator noted.
Household debts stood at a relatively high level considering the country's
economic size, the FSC said.
"From a macroeconomic viewpoint, high levels of household debts could erode
savings and economic growth potential and possibly lead to insolvency by
financial institutions and families," it said.
As of December, household debts to commercial banks stood at 430.4 trillion won
(US$384 billion) as of the end of December after growing by 2.1 trillion won last
month, compared with a gain of 200 billion won a year earlier.
pbr@yna.co.kr
(END)

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