Bank of Korea Warns of Housing, Debt Risks as Easing Continues
Persistent housing price gains, particularly in the Seoul metropolitan area, could accelerate debt accumulation in South Korea and pose risks to financial stability, threatening a financial system that generally held up well in the face of prolonged political turmoil and US tariffs.
In a semi-annual report on the financial system Wednesday, the Bank of Korea said the system remained largely stable in the first half of 2025, despite heightened volatility in financial and foreign exchange markets. The period was marked by elevated political uncertainty stemming from a leadership vacuum following former President Yoon Suk Yeol's impeachment, as well as ongoing trade tensions with the Trump administration.
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