Hong Nam-ki and Lee Ju-yeol “Concerns about the financial-real gap, risk management should be strengthened”

Deputy Prime Minister Hong Nam-ki and Minister of Strategy and Finance and Bank of Korea Governor Lee Ju-yeol agreed that crisis management should be strengthened throughout the financial sector. It is a voice that attention should be paid as there are always risk factors due to the liquidity supply following the novel coronavirus infection (Corona 19) pandemic.

Deputy Prime Minister Hong Nam-ki said in the new year address of the ‘2021 Pan-Finance New Year’s Society’ announced on the 5th, “The financial market has shown a steady state despite the corona crisis, but concerns about the gap between real and financial are growing. We must make every effort to stabilize the financial sector through management.”

“Considering that the corona crisis is currently in progress, it is necessary to communicate with the financial sector and industry to make a soft landing without impairing financial stability in the process of normalizing financial support in the future.” “The government should also consider’ordered normalization’. We will carefully manage market liquidity while paying particular attention to the possibility that the increased liquidity will cause a shift to the asset market and a surge in debt.”

Bank of Korea governor Lee Ju-yeol also emphasized that “there is a high level of vigilance,” saying, “The potential risks are expected to be revealed this year due to the liquidity supply of policy authorities and financial sectors and the deferment of interest repayment.”

In particular, he ordered, “In a situation where the level of debt is high and the gap between finance and real is widened, the market can be greatly shaken even by a small shock,” and “Please take a closer look at the vulnerable areas of the financial system.”

To this end, he stressed, “We need to continue supporting households and businesses, but increase the efficiency of resource allocation step by step,” he stressed, “Please make every effort to maintain the soundness and resilience of the financial system.”

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