Gov t to tighten lending rules to curb household debt
Posted : 2021-04-29 16:29
Updated : 2021-04-29 16:49
Deputy Prime Minister and Finance Minister Hong Nam-ki speaks during a meeting with top financial regulators at the Export-Import Bank of Korea (Eximbank). Yonhap
By Lee Kyung-min
The government decided Thursday to tighten lending rules in stages to slow down the pace of household debt growth, which is expected to hit 6 percent this year and 4 percent in 2022, levels seen before the COVID-19 pandemic started.
Through the measure, the government seeks to rein in the steep increase in borrowing over the past year amid the economic crisis triggered by the pandemic, as the economy shows clear signs of a rebound with the prospect of herd immunity being achieved sooner.
Gov t to tighten lending rules to curb household debt
Posted : 2021-04-29 16:29
Updated : 2021-04-29 16:49
Deputy Prime Minister and Finance Minister Hong Nam-ki speaks during a meeting with top financial regulators at the Export-Import Bank of Korea (Eximbank). Yonhap
By Lee Kyung-min
The government decided Thursday to tighten lending rules in stages to slow down the pace of household debt growth, which is expected to hit 6 percent this year and 4 percent in 2022, levels seen before the COVID-19 pandemic started.
Through the measure, the government seeks to rein in the steep increase in borrowing over the past year amid the economic crisis triggered by the pandemic, as the economy shows clear signs of a rebound with the prospect of herd immunity being achieved sooner.
Korea achieves faster-than-expected economic recovery
The Korean economy grew 1.8 percent in the first quarter of 2021 from a year earlier ― 1.6 percent up from previous quarter ― rebounding to its pre-COVID-19 level. According to the Bank of Korea (BOK), Tuesday, the nation s gross domestic product (GDP) rose to 470.8 trillion won ($423.2 billion) during the period, the highest since the fourth quarter of 2019 before the coronavirus pandemic outbreak. At that time Korea s GDP stood at 468.8 trillion won.
Private consumption rose 1.1 percent, leading the expansion, as exports growth slowed to 1.9 percent compared to 5.4 percent during the fourth quarter of 2020. But overseas shipments will likely pick up steam during the remainder of the year, riding on an expected recovery in the global economy.