Top financial regulators in South Korea have vowed to cooperate on adopting stronger preemptive measures to counter lingering pandemic risks. Financial Services Commission Chairman Koh Seung-beom and Financial Supervisory Service Governor Jeong Eun-bo in their first meeting of the year agreed to make risks tied to the nation’s household debt growth, accumulating debt of the self-employed and small business owners, and the non-banking sector their top priorities. The two institutions also pledged to carry out a stable risk management of the financial sector. Financial authorities have been warning local financial institutions to brace for the possibility of growing credit risk from households and small businesses. Bank of Korea data released in December showed that loans extended to small businesses and the self-employed gained 14.2% on-year to KRW887.5tr in the July-September period last year.
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