BoK warns of debt risks

“We know from past experiences that should a continued expansion in debt lead to a sudden collapse in the bubble, it can cost the society enormously,” Rhee said

SEOUL: Bank of Korea (BoK) governor Rhee Chang-yong has highlighted rapidly rising private and public debt and an ageing population as threats to South Korea’s economic outlook in his inauguration speech.

Lee took office yesterday after being nominated by president Moon Jae-in almost a month ago. He has so far expressed support for higher interest rates to rein in inflationary pressures while pointing to economic risks from the war in Ukraine,