SEOUL, June 24: Hwang Kun-il, a board member of the Bank of Korea, expressed concerns regarding rising financial stability risks stemming from increased household debt and leveraged stock investments in a recent financial stability report.
Hwang emphasized the risks associated with surging house prices, particularly in Seoul, which could lead to greater household debt. He warned that rising inequality poses additional threats to financial stability. Furthermore, he noted heightened volatility in financial and foreign exchange markets during the year's first half.
The South Korean stock market has experienced a remarkable AI-driven rally, contributing to a surge in risky investments among retail investors, with borrowing reaching unprecedented levels.