BOK warns of financial imbalances due to rising housing prices, household debt

Korea's financial system remains stable, but persistent expectations of rising home prices could fuel financial imbalances, the central bank said Thursday. "The country's financial system generally remains stable, supported by the resilience of sound financial institutions and strong external payment capacity. But expectations of rising housing prices in Seoul persist, causing concerns about financial imbalances," the Bank of Korea (BOK) said in its report on financial stability. The government has introduced a series of measures to curb surging housing prices and household debt, including tighter lending regulations and plans to increase housing supply, which have led to a significant drop in home transactions. "But the index on housing price expectations has risen since August, and some areas in Seoul have seen price growth accelerate again since the start of September," the BOK noted. Household loans in the financial sector rose by 2.3 trillion won in July, down sharply from June's 6.5 trillion-won increase. But in August, loan growth accelerated again by expanding 4.7 trillion won, paWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times