(Financial Supervisory Service)
(Financial Supervisory Service)

South Korea's financial watchdog said Monday it will redouble efforts to enhance the stable management of household debt and the monitoring of the financial risks.

"In the face of macroeconomic uncertainties, such as an economic slowdown, a monetary policy pivot, there are concerns over increasing the volatility of the financial market and stable management of household loans this year," the Financial Supervisory Service said in its 2025 policy report.

The watchdog said it will take preemptive measures against market woes by detecting potential risks.

For one, the FSS said, along with the Bank of Korea, it will implement a stress test on financial institutions and enhance market monitoring.

The watchdog also said it will upgrade its supervisory and regulatory schemes and the capital market, create an environment for digital innovation based on artificial intelligence and provide support to the financial sector to secure future growth engines. (Yonhap)