SEOUL — Kim Byoung-hwan, nominated to lead South Korea's Financial Services Commission (FSC), committed to stringent management of rising household loans during a parliamentary confirmation hearing on Monday. The nominee expressed concerns about the rapid increase in such debts potentially undermining the country’s economic recovery and financial stability.
According to Yonhap News Agency, a former vice finance minister, there's a pressing need to remain vigilant against the swift growth of household loans, which have been increasing for three consecutive months. As of the end of June, outstanding household loans from banks reached a total of 1,115.5 trillion won (US$805 billion). Furthermore, bank loan delinquency rates have risen over the last two months, indicating heightened financial risks amidst high market rates.
During the hearing, Kim also addressed the issue of cryptocurrency regulations, advocating for continued investor protection in light of previous market turmoil. He showed reservation about allowing corporations to hold bank accounts for cryptocurrency transactions and expressed caution regarding the potential approval of transactions involving spot bitcoin exchange-traded funds, emphasizing the importance of assessing their impact on financial market stability and institutions.
The nominee’s statements underscore a cautious approach towards both traditional and digital financial challenges as South Korea navigates complex economic conditions.