Bank of Korea monitors South Korea's household debt growth

A board member of the Bank of Korea, Chang Yong-sung, stated that the rise in household debt may become an important topic again. This comes as property prices in South Korea are increasing. He indicated that discussions about stabilizing these home prices could return, especially as interest rate cuts continue. The Bank of Korea recently lowered interest rates by 25 basis points to 2.75 percent. This was the third rate cut since it began reducing rates from a high level in October. Analysts expect more cuts this year, possibly bringing rates down to 2.25 percent. Chang also mentioned concerns about the foreign exchange market. While the U.S. Federal Reserve may not cut rates much in the near future, South Korea's rates could be significantly lower. Additionally, South Korea is facing challenges from the ongoing trade tensions due to U.S. tariffs, which could affect businesses. There is also political unrest following the brief declaration of martial law by the impeached president. To address rising home prices, the South Korean government plans to tighten trading rules in affluent areas of Seoul. These measures aim to prevent speculative buying in the real estate market.