The government said on the 21st that, in connection with the recent rise in Government Bonds yields in major countries including the United States, Europe and Japan, it will prepare and announce measures to ease the debt burden on small business owners, low-income people and vulnerable borrowers.
Koo Yun-cheol, Deputy Prime Minister for the Economy and Minister of Strategy and Finance, presided over a "market conditions review meeting" that day. Lee Eog-weon, chair of the Financial Services Commission (FSC), Lee Chan-jin, governor of the Financial Supervisory Service, and Park Jong-woo, deputy governor of the Bank of Korea, attended.
Participants reviewed the domestic impact of rising long-term interest rates in major countries. They analyzed that, amid ongoing uncertainty in the Middle East, increases in Government Bonds issuance by each country and expanded corporate bond issuance by global artificial intelligence (AI) corporations are pushing up yields, centered on ultra-long maturities.
They added that they will continue to examine how this rise in long-term interest rates affects domestic and overseas financial markets, the funding expense of corporations and households, and the real economy. They went on to say they decided to swiftly prepare and announce support measures to ease small business owners' debt burden and reduce the financial burden on low-income people and vulnerable borrowers so that higher rates do not lead to excessive strain on vulnerable borrowers.
Participants also said that, because the household debt ratio remains high compared with major countries, they will continue management and provide careful support to ensure genuine demand borrowers do not face funding difficulties.