South Korea will address household debt
On Thursday, South Korean finance minister informed that the country’s authorities are on the verge of addressing concerns regarding oversupply in the property market. He added that downside risks are soaring for Asia's fourth-largest economy.
Talking to other ministers in Seoul, Yoo Il-ho, finance chief told that the government is going to respond to risks closely connected with household debt by simply encouraging fixed-rate, amortized loans instead of interest payment-only loans.
The government will look for stable management of household debt, pointed out as a risk to the national economy.
With interest rates at an all-time minimum, South Korean household debt has turned to be at a record peak, undermining domestic demand even as exports have dropped for nineteen straight months.
The minister added that next month an anti-graft law will be introduced. It actually imposes spending limits on gifts as well as meals for public servants, etc. However, the measure is supposed to constrain the economic recovery during the second half of 2016.