“Debt investment causes difficult losses when adjusting”
Bank of Korea Governor Lee Ju-yeol on the 15th said, “The recent share price rise rate is much faster than in the past.”
Governor Lee said about the recent stock market situation at a live internet press conference that opened after the Financial Monetary Commission was over at the main building of the Bank of Korea in Jung-gu, Seoul.
Governor Lee said, “It is difficult to judge the recent KOSPI surge as a bubble, but it is true that the recent rate of increase is much faster than the past when looking at the stock price trend and indicators.”
He said, “If you go too fast, it can be shaken even by a small shock.” Said.
Regarding’debt investment’, he cautioned investors, saying, “Investment expansion based on excessive leverage can cause losses that are difficult for investors to bear if price adjustments are made.”
Previously, Governor Lee was concerned that in the New Year’s address announced on the 5th of this month to the New Year’s meeting in the pan-financial sector, “In a state where debt levels are high and the gap between finance and real matters widens, the market can be shaken significantly even with a small impact.”
He said, “We are paying close attention to the possibility of a stock price adjustment,” he said. “However, even if the asset price adjustment occurs to some extent, it is not enough to worry about the overall resilience of the current financial system.”
(yunhap news)
