South Korea's financial regulator has warned the soundness of household debt in the country could become vulnerable FAST... if there's a period of financial volatility.
Financial Services Commission Chairman Choi Jong-ku points to the absolute size of South Korea's household debt, interest rate hikes and jeonse loans as the major risk factors.
He warned the country's jeonse or "Key Money Deposit loans" could suffer insolvency this year due to plunging jeonse prices accompanied by expected rate hikes.
Choi says the government aims to slow the growth of household debt to about five percent by 2021,... while enhancing loan-related regulations for further risk management.
