Undoubtedly there are many stressed households with burdensome mortgage debts, not least in the buy-to-let category; the policy challenges that this presents in terms of achieving workable and fair solutions are more complex than the mere issue of the likely loan-losses that might be involved, for which (as I have mentioned) an allowance well in excess of the banks’ own accounting provisions has already been made.
Digital transformation, the reorganization of global value chains, and the shift towards a low-carbon economy that we are facing now could be enormous challenges, but they could also be a springboard for further progress if the government and the private sector work closely together to cope with these challenges wisely. Dear members of the Bank of Korea!