Chang Yongsung, a member of the Bank of Korea's monetary policy committee, said in a statement on Tuesday that the bank will decide the timing and pace of further interest rate hikes and keep a close eye on inflation, economic conditions and financial stability. The Bank of Korea will strengthen monitoring of financial and foreign exchange markets and domestic and foreign factors, and cooperate closely with the government to promptly adopt market stabilization measures in the event of market instability. Despite domestic and international uncertainties, the Korean financial system remains generally stable, thanks to sound financial institutions and strong external payment capacity. Nevertheless, we still need to be alert to potential risks in the financial system. As housing prices continue to rise in the Seoul metropolitan area, household borrowing is likely to increase further, and concerns about worsening financial imbalances remain high. Despite strong economic growth, income growth across industries was uneven, raising concerns that higher interest rates could weaken the ability of vulnerable borrowers to repay their debts.

Chang Yongsung, a member of the Bank of Korea's monetary policy committee, said in a statement on Tuesday that the bank will decide the timing and pace of further interest rate hikes and keep a close eye on inflation, economic conditions and financial stability. The Bank of Korea will strengthen monitoring of financial and foreign exchange markets and domestic and foreign factors, and cooperate closely with the government to promptly adopt market stabilization measures in the event of market instability. Despite domestic and international uncertainties, the Korean financial system remains generally stable, thanks to sound financial institutions and strong external payment capacity. Nevertheless, we still need to be alert to potential risks in the financial system. As housing prices continue to rise in the Seoul metropolitan area, household borrowing is likely to increase further, and concerns about worsening financial imbalances remain high. Despite strong economic growth, income growth across industries was uneven, raising concerns that higher interest rates could weaken the ability of vulnerable borrowers to repay their debts.