[THE INVESTOR] The Bank of Korea held the benchmark rate at 1.25 percent on Aug. 11.

The decision is thought to have been fueled by concerns over rising household debt, and to gauge the effect of the supplementary budget before making changes. 




In July, household debt shot by 6.3 trillion won (US$5.7 billion) despite the government’s efforts to curb the rise with tougher loan regulations. Of the rise in July, home-backed loans accounted for 5.8 trillion won. The rise is the largest monthly increase recorded this year.

With household loans soaring, and exports falling, the government plans to roll out stimulus measures worth 28 trillion won, including the 11 trillion won supplementary budget, during the second half of the year.

By Choi He-suk (cheesuk@heraldcorp.com)