Finance Minister Choi Sang-mok speaks during a meeting at the Government Complex Seoul in Jongno District, Seoul, Sept. 12. Yonhap
Finance Minister Choi Sang-mok said Thursday that the government will stay vigilant against surging household debt and double up on effort to manage it in a stable manner.
Choi made the remarks during a meeting of economy-related ministers, where he also pledged to prioritize measures to boost domestic demand and to curb prices ahead of the Chuseok holiday.
"Growing housing transactions have led to the increase in household loans, particularly mortgage loans, since around June. We will manage it more stably with a sense of alertness," Choi said.
As of end-August, outstanding household loans extended by banks came to 1,130 trillion won ($842.21 billion), up 9.3 trillion won from a month earlier, according to the preliminary data from the Bank of Korea (BOK).
It marked the fastest on-month growth ever since 2004, when the BOK began compiling relevant data.
"We've seen an economic recovery led by exports but the recovery of domestic demand has not relatively picked up pace," Choi said. "The government will extend tailored support and take measures to spur investment."
Speaking of inflation, the minister pointed to still-high prices of vegetables and other items for the Chuseok holiday due mainly to a heat wave, and vowed measures to stabilize prices by beefing up supplies.
Demand for vegetables and other foodstuffs usually rises in Korea ahead of the holiday as people prepare holiday meals for family gatherings.
Consumer prices, a key gauge of inflation, rose 2 percent on-year in August, the slowest increase since March 2021.
As part of effort to resolve payment delays of TMON and WeMakePrice, the government will submit a law revision to the National Assembly meant to prevent any recurrence, Choi said.
The two e-commerce platforms filed for court-supervised rehabilitation following overdue payments to their vendors that reached over 1 trillion won, and the Seoul Bankruptcy Court on Tuesday granted a rehabilitation process. (Yonhap)