S. Korean Experts Term Household Debt As Major Systemic Risk: Poll

SEOUL, Nov 21 (Bernama-Xinhua) -- South Korean experts have termed household debt as the biggest systemic risk facing the local financial market, a central bank poll showed on Thursday, reported Xinhua.

According to the Bank of Korea (BOK) survey, 26.9 per cent of respondents said massive household debt and growing debt-servicing burden were the key risk factor to the South Korean financial system.

The result was based on a poll of 78 experts conducted between October 29 and November 8. The experts included executives of local financial institutions, researchers and college professors.

The BOK cut its benchmark interest rate by 25 basis points to 3.25 per cent in October as part of efforts to prop up the lacklustre housing market and reduce debt-servicing burden.

The household debt was followed by policy changes after the US presidential elections, which 20.5 per cent selected as a major systemic risk.

Industrial policies in favour of their own countries, including the US supply chain restructuring policy, were picked by 9 per cent of respondents as the biggest systemic risk, trailed by higher insolvency among the self-employed and a delayed recovery in domestic demand.  

-- BERNAMA-XINHUA