The Bank of Korea stressed the need to further raise the country's key interest rate to resolve worsening financial imbalances in its financial stability report published Friday.
The Bank of Korea signaled an additional interest rate hike within this year in a report Thursday, as both household debt and real estate prices keep growing.
Korea reported its 15th current account surplus in a row in July, led by a record surplus in the transport account.
The heads of the Bank of Korea (BOK) and Financial Services Commission (FSC) agreed to work together on issues such as rising household debt.
Korea’s economy grew by 6 percent on year in the second quarter this year, slightly faster than earlier projections, as exports and consumer and government spending were strong.
Jin Chang-ho, a principal at Kearney Korea, believes central bank digital currency (CBDC) could innovate finance.
The Bank of Korea (BOK) raised Korea's benchmark interest rate by 25 basis points to 0.75 percent Thursday, hoping to slow snowballing household debt.
The central bank raised Korea's benchmark interest rate by 0.25 percentage points to 0.75 percent Thursday.
Household debt rose 10.3 percent on year in the second quarter to 1,805.9 trillion won, hitting a new record as Koreans borrowed big to buy into initial public offering and to finance real estate.
Bank of Korea and the Central Bank of the Republic of Turkey signed a 2.3-trillion-won ($2 billion) currency swap deal on Thursday.