The government on Friday vowed to closely monitor the financial market amid lingering uncertainties stemming from ongoing talks with the United States over its tariff scheme and global economic conditions.
Such remarks were made during a meeting on macroeconomic issues, presided over by acting Finance Minister Kim Beom-suk and attended by Bank of Korea Gov. Rhee Chang-yong, along with the heads of the Financial Services Commission and the Financial Supervisory Service, according to the Ministry of Economy and Finance.
"The domestic financial and foreign exchange markets have been stable recently. But we will continue to monitor market conditions closely through close cooperation among relevant institutions given ongoing external uncertainties, such as tariff negotiations between major countries and the US, as well as the US economic outlook," the ministry said in a release.
In February 2024, the government introduced the stressed debt service coverage ratio, which measures how much a borrower must pay in principal and interest relative to their annual income, serving as a ceiling on aggregate lending. A stricter version of the rule is scheduled to take effect in July.
"The officials reached a consensus on the need for differentiated application of the rule between the Seoul metropolitan area and non-metropolitan regions, taking into account the local construction economy and other factors," the ministry said. "The detailed implementation plan is scheduled to be announced next week." (Yonhap)
