We need to heighten our caution concerning the rapidly growing household debt. The general consensus is that the probability of household debt threatening our economy’s stability is not high for now, but if its current rapid growth persists it could work to constrain household consumption and destabilize the financial system.
We should therefore respond actively to the household debt problem, in closely cooperation with the government and the supervisory authorities. Efforts to support structural reform are also crucial. Structural reform should in principle be led by the government, but there will be some tasks that the Bank of Korea should carry out.