[THE INVESTOR] South Korea’s top financial regulator said on Oct. 6 that managing rising household debt is the top priority to revitalize the country’s economy.

Speaking to lawmakers, Financial Services Commission Chairman Yim Jong-yong noted that it’s the “biggest risk factor” for the economy already in distress due to a number of setbacks including sluggish export growth and domestic spending.

“The government is trying to deal comprehensively and thoroughly with the issue,” he said during an annual parliamentary audit of the FSC’s affairs.

Household debt here jumped 11.1 percent on-year to an all-time high of 1,257.3 trillion won (US$1,131.7 billion) in the second quarter of 2016, boosted by prolonged low interest rates and unrelenting demand for new apartments, according to official data.

“The FSC is making every effort to cope (effectively) with potential risk factors facing our economy and establish a more stable financial system,” Yim said.

(theinvestor@heraldcorp.com)