Bank of Korea board member raises concerns about house prices, leveraged stock investments

SEOUL: A board member of the Bank of Korea, ​Hwang Kun-il, said the central ‌bank would more closely monitor financial stability risks such as household ​debt and leveraged stock investments.

Here ​are some details:

“There are worries ⁠about household debt growth rising again ​as house prices continue to increase ​in the Seoul area and leveraged asset investments grow,” Hwang said in remarks released with ​the central bank’s semi-annual financial ​stability report.

The central bank needs to be ‌wary ⁠of the possibility of growing inequality becoming a potential financial stability risk, Hwang said.

South Korean shares fall more than 4% on profit-taking

Volatility in financial and ​foreign exchange ​markets ⁠also increased in the first half of this year, ​Hwang said.

A world-beating AI-driven ​rally ⁠in South Korea’s stock market has fuelled a boom in risky ⁠investments ​by retail investors, ​with their borrowed investments at record levels.