South Korea to support vulnerable borrowers amid rising interest rates

South Korean Deputy Prime Minister and Minister of Economy and Finance, Gu Yun-cheol, announced plans to quickly release support measures for vulnerable borrowers and small business owners. This decision follows a rise in long-term government bond yields in major economies, including the US, Japan, and the UK, which has also impacted the domestic bond market.

During a market monitoring meeting involving leaders from the Financial Services Commission, Financial Supervisory Service, and the Bank of Korea, officials discussed the increasing debt burden on households and self-employed individuals. The government intends to expand financial support and debt restructuring to help these groups recover.

Regarding the foreign exchange market, officials noted that the KRW/USD exchange rate has returned to the 1,300 won range due to record current account surpluses. While household debt has surpassed 2,000 trillion won, the ratio of debt to GDP has decreased. The government pledged to continue managing household debt while ensuring that actual demanders face no difficulties in securing funds.