Kim Yong-beom “Manage abundant liquidity and real estate inflow”

Kim Yong-beom, the first vice minister of the Ministry of Strategy and Finance, said on the 23rd, “We will manage to prevent the inflow of abundant liquidity to non-productive sectors such as real estate.”

Deputy Minister Kim presided over the’Macro Economic and Financial Conference’ held at the Seoul Bank Center this morning and said, “Abundance of liquidity is like a’double-edged sword’, so that water can be channeled to the place where liquidity is absolutely necessary, and banks are built to prevent overflowing to unnecessary places. (治水) is necessary,” he said.



He added, “In order to induce the inflow of funds into the Korean version of the New Deal through full operation of the policy-type New Deal Fund, we will complete the selection of the policy-type New Deal Fund consignment manager by the end of this month and start the creation of the self-funded fund from March.”

In recent years, the global financial market has shown strong investment sentiment for risky assets. The three indexes of the US stock market hit a record high on expectations for economic recovery from vaccination and the conclusion of additional stimulus measures in the US Congress.

Deputy Minister Kim said, “As the expectations of economic recovery overlap with the prospect of expanding government bond issuance following the large-scale fiscal stimulus in the United States, the fact that US Treasury yields rise rapidly, prices of raw materials such as oil, and inflation concerns spread, will act as an unstable factor in the financial market. I could do it,” he said.



He then emphasized, “We will closely monitor the situation as it cannot be ruled out the possibility that market volatility will expand according to the congressional testimony of the Fed Chairman Powell scheduled this week and the congressional discussion of the US economic stimulus package.”

Deputy Minister Kim believes that the domestic financial market generally shows a good trend. The 10-year Treasury bond rate hit a year-round high again on the rise of global interest rates due to concerns over inflation and increasing concerns over the supply and demand burden of government bonds.

The stock market, which has been on the rise, has partially expanded due to uncertainties surrounding the domestic and international economic and financial markets such as inflation concerns and liquidity recovery from China.

Deputy Minister Kim analyzed that “recently, daily transaction volume and investor deposits have decreased compared to the beginning of the year. In addition to expectations for the improvement of the corona situation and economic recovery, there is also a sense of vigilance about risk factors that may arise in the process of overcoming the crisis.” did.

He said, “We will do our best to stabilize the financial market by reinforcing the inspection of domestic and overseas financial market trends and risk factors with special attention to the relevant institutions.”