The government said on the 4th that, in connection with the recent rise in Government Bonds yields in major countries including the United States, Japan, and the United Kingdom, "if rates rise sharply going forward, difficulties for vulnerable borrowers could worsen."
Koo Yun-cheol, Deputy Prime Minister for the Economy and Minister of Strategy and Finance, presided over a "market conditions review meeting" at the Korea Federation of Banks hall on the morning of the 4th. Attending were Lee Eog-weon, chair of the Financial Services Commission (FSC), Kim Ei-tak, first vice minister of the Ministry of Land, Infrastructure and Transport, Lee Chan-jin, governor of the Financial Supervisory Service, and Kwon Min-su, deputy governor of the Bank of Korea. For Deputy Prime Minister Koo, this was the first official schedule after returning from the G20 meeting.
Participants reviewed the domestic impact of increased Government Bonds issuance by each country. They analyzed that "as increased Government Bonds issuance by each country and corporate bond issuance by global artificial intelligence (AI) corporations add to supply-demand factors, alongside rising expectations for policy rate hikes in major countries and higher oil prices amid renewed Middle East tensions, upward pressure on rates is continuing."
They added that "we decided to closely monitor trends in the domestic bond market and manage it stably so that market volatility does not expand excessively." They also said, "a review of the impact on vulnerable borrowers from rising rates and the soundness of mutual finance institutions shows that conditions are generally sound so far, but if rates rise sharply going forward, difficulties could worsen."
Participants also said, "we will push ahead without a hitch with the support plan for vulnerable borrowers released on the 28th."