Consistent Household Debt Management to Continue Next Year
Vowing to Ruin Stock Price Manipulators
Lee Eogwon, Chairman of the Financial Services Commission, announced that the strong stance on household debt management will continue next year.
On December 21, appearing on KBS Sunday Diagnosis, Chairman Lee stated, "From the perspective of total household debt management, it is inevitable that the current policy will continue next year," adding, "We have no choice but to maintain this consistent approach throughout the coming year."
He explained, "We manage the growth rate of total household debt in line with the nominal economic growth rate, but since the absolute level of household debt is currently so high, we have no choice but to set the debt growth rate lower than the nominal growth rate to ensure a soft landing."
Regarding concerns that banks are effectively closing their lending windows at the end of the year to meet the government's total debt targets, he said, "We will look into how we can address the issue of excessive concentration at specific times."
On the recent rise in government bond yields and the continued surge of the won-dollar exchange rate, he commented, "It is true that there is a sense of caution."
However, Chairman Lee emphasized, "From a comprehensive perspective of the soundness of the financial system and its crisis response capabilities, there are no major issues," adding, "We will closely monitor market conditions and, if necessary, proactively implement market stabilization measures at any time."
He also stated that the joint response team, established with the Financial Services Commission, Financial Supervisory Service, and Korea Exchange, will continue to publicize cases of 'ruinous stock price manipulation.'
Chairman Lee assessed, "Within just two months of launching the joint response team, we uncovered the first and second cases. The fact that we acted swiftly and imposed full financial penalties sent a very strong signal to the capital market."
Regarding the National Growth Fund, which will invest 150 trillion won in advanced strategic industries over five years, he described it as "a national response tool to prepare for the global investment war." Addressing criticism that it lacks differentiation from previous government policy funds, he stressed, "The National Growth Fund has a clear legal basis and is distinct from past government funds."
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