Seoul: The country's financial regulator announced on Thursday that it will persist in efforts to manage household debts throughout the year to stabilize financial markets. The regulator emphasized the continuation of stringent rules on household loans.
According to Yonhap News Agency, the Financial Services Commission (FSC) detailed its policy intentions in a report presented to a parliamentary committee. The report highlighted the FSC's commitment to maintaining policies designed to curb household debt, which has shown signs of slowing growth recently.
Household loans issued by South Korean banks experienced a decline for the first time in 11 months during December. This decrease is attributed to strict lending regulations intended to cool the overheated property market in the capital region. As of the end of December, banks' outstanding household loans totaled 1,173.6 trillion won (US$794.7 billion), marking a 2.2 trillion won reduction from the previous month.
The FSC also announced plans to expedite efforts to promote productive and inclusive finance. Additionally, the regulator aims to develop a road map to restore trust in the tech-heavy Kosdaq market. This initiative includes swiftly removing financially troubled companies and reducing entry barriers for new market participants.