Rhee Chang-yong, governor of the Bank of Korea, said at a press briefing held right after the the Bank of Korea's monetary policy committee meeting on the 23rd, "Stock prices, in international comparison, are not yet at a particularly high level," adding, "Overall average stock prices are not at a level to worry about a bubble."
Rhee said, "Stock prices are influenced not only by Korea but also by global movements," adding, "However, the question of whether there is a bubble in the artificial intelligence (AI) sector is hotly debated worldwide, so I think there could be a correction effect."
However, Rhee noted that he is watching the possibility that increased market liquidity could push up asset prices. Rhee said, "Short-term deposits that were previously invested in assets have flowed into stock and real estate investment, increasing broad money (M2)," adding, "As past liquidity shifts, we are seeing asset prices, some asset prices, rising."
In particular, on real estate prices, he added, "Regardless of whether there is a bubble, real estate prices in the greater Seoul area are at a level that is high for maintaining social stability," explaining that, for financial stability, the pace of real estate price increases needs to slow.