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S.Korean financiers pick household debt, inflation as biggest financial risk

SEOUL
2021-12-08 15:18

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SEOUL, Dec. 8 (Xinhua) -- South Korean financiers picked massive household debt and high inflation as the biggest financial risk, a central bank survey showed Wednesday.

According to the Bank of Korea (BOK) survey, the highest number of respondents selected the high household debt and the inflation, caused by the global supply disruption, as the biggest risk facing the country's financial system.

The country's ratio of household debt to gross domestic product (GDP) was 104.2 percent in the April-June quarter.

The consumer price index (CPI) soared 3.7 percent in November from a year earlier, recording the fastest growth in about 10 years.

The U.S. Federal Reserve's reduction of its monthly asset purchase program was picked as the third-highest financial risk for South Korea.

It was followed by higher market rates, the end of the financial support programs to tackle the COVID-19 pandemic, and the slower global economic recovery.

The result was based on a poll of 80 financiers conducted between Nov. 9 and Nov. 22. Respondents were allowed multiple replies.

Those who saw a high possibility for the financial shock to happen within one year was 12 percent of respondents, up from 9 percent in the previous survey.

Those who predicted a low possibility for the financial crisis to occur within one year declined from 47 percent to 39 percent.
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