"‘Yeongkkeul’ Loan and Investment Behavior Is Really Risky"
Kim Dae-gi, Chief of Staff to the President, warned on the 29th that "if a household debt crisis occurs, its impact will be several tens of times greater than the foreign exchange crisis we experienced in 1997 due to corporate debt," cautioning against reckless 'Yeonggeul loans' and the like.
At a high-level ruling party-government consultation held at the Prime Minister's official residence in Samcheong-dong, Seoul, Kim said, "The household debt issue is something that must be well managed."
Kim pointed out, "Especially the behaviors such as 'Yeonggeul loans' or 'Yeonggeul investments,' which were popular in past governments, are truly dangerous."
Kim also noted, "These days, small business owners seem to be in very difficult circumstances," adding, "High interest rates and high prices are the main causes, but structural factors such as the burden of rapidly increased minimum wages and labor shortages due to low birth rates are also serious."
Kim stated that during President Yoon Seok-yeol's state visits to Saudi Arabia and Qatar, orders worth 24 trillion won were secured, saying, "Including the United Arab Emirates (UAE), orders over the past year have exceeded 100 trillion won," and explained, "Moreover, the world's wealthiest countries are now seeking South Korea as an economic cooperation partner. This is very encouraging."
He continued, "With South Korea's status rapidly rising under the current administration, efforts must be made to improve the business environment through deregulation and workforce development to link this to economic recovery."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
