The South Korean government convenes an emergency meeting in just one week from its February 21 discussion session on household debts in the non-banking sector. This is because an increasing number of loan seekers are resorting to the non-banking sector with household debts currently at a record-high level.
According to industry sources, the Financial Supervisory Service and Financial Services Commission (FSC) hold the meeting on February 28, presided over by FSC Vice Chairman Jeong Eun-bo. The main topic of the meeting is how to control household debts and how to find out an optimum upper limit.
Some regulatory measures can be discussed at the meeting, too. At the end of last year, South Korean households recorded an outstanding loan balance of 1.344 quadrillion won (US$1.14 trillion), an all-time high.
“Such a rapid increase in outstanding loans is worrisome in the current economic recession in particular,” said a high-ranking government official, adding, “The government would be well advised to take measures so that household debts do not get in the way of economic growth.”