The Bank of Korea (BOK) warned of growing vulnerability to the financial system from mounting household debt, probably signaling a raise in interest rates.
 
The central bank said in a regular financial stability report released Tuesday that should an unexpected economic crisis takes place, the country's gross domestic product (GDP) could contract by as much as 2.2 percent.
 
According to the report, the ratio of household and company debt to GDP hit a record 216.3 percent in the first quarter, up 15.9 percentage points year on year. Household and company debt grew by 9.4 percent on year in the first quarter, and the country's GDP grew at a much slower 1.3 percent.


Full Article: https://koreajoongangdaily.joins.com/2021/06/22/business/finance/bank-of-korea-interest-rate-financial-stability/20210622185213621.html