Bank of Korea Warns of Financial Risk as Real Estate Loans Fail
- BOK flags delinquencies on real estate loans, non-bank risk
- Governor Rhee Chang-yong says in text of speech Monday
This article is for subscribers only.
Bank of Korea Governor Rhee Chang-yong flagged growing financial sector risks amid a rise in real estate loan delinquencies— even as the broader housing market slowly recovers.
“In the mid- to long-term, it is necessary to find a way to smoothly deleverage household debt in cooperation with relevant institutions so that financial imbalances don’t accumulate again,” Rhee said in the text of a speech he gave Monday to mark the central bank’s 73rd anniversary.