Lee Eokwon, Chairman of the Financial Services Commission: "We Will Make Every Effort to Ensure a Soft Landing for Household Debt" [2025 National Audit]

Emphasizing Commitment to Productive Finance
Managing Demand Through Phase 3 DSR

Lee Eokwon, Chairman of the Financial Services Commission, is speaking at the comprehensive audit of the Financial Services Commission and the Financial Supervisory Service held by the Political Affairs Committee at the National Assembly in Yeouido, Seoul on the 27th. 2025.10.27 Photo by Kim Hyunmin

Lee Eokwon, Chairman of the Financial Services Commission, stated on the 27th, "We will make every effort to ensure a soft landing for household debt."

During the National Assembly’s Political Affairs Committee audit on this day, Chairman Lee responded to Kangil Lee, a lawmaker from the Democratic Party of Korea, who pointed out that out of 1,952 trillion won in household credit, 1,150 trillion won is in mortgage loans. He said, "The Korean economy has generated significant household debt, and most of it is tied up in real estate. From the perspective of sustainable growth, there are many problems."

Household credit in South Korea stands at 1,952 trillion won, which is equivalent to 97% of GDP. Compared to advanced economies such as the United States (74%), Germany (51%), and Japan (56%), the scale of household loans is considered excessively high.

When Assemblyman Lee asked for his views on the government's real estate policies, Chairman Lee replied, "We will manage the total amount of household debt so that it remains below the nominal growth rate, and on the supply side, we will shift toward productive finance." He added, "We will also manage household debt in line with repayment capacity and make every effort to ensure a soft landing."