The government plans to launch a consultative committee with the central bank and other relevant agencies to exchange views and policies in response to deepening household debt problems, financial sector sources said Sunday.
The consultative committee, which will consist of officials from the finance ministry, the Bank of Korea, the Financial Services Commission and the Financial Supervisory Service, is expected to serve as a main cooperation channel to deal with the household debt issue.
"With household debt fast increasing, (the committee) is intended to mount a joint approach by sharing information held by each agency and analyzing them systematically," a source in the financial sector close to the matter said. "This committee will play a central role in resolving household debt problems."
The committee is expected to be launched after the nominee for the Financial Services Commission is approved in a parliamentary confirmation hearing, scheduled for Tuesday.
Fast-rising household debt has emerged as a major drag on the country's economy. Outstanding household loans surpassed the 1,000 trillion won ($910.2 billion) mark for the first time in the third quarter of last year and totaled 1,089 trillion won by end-2014. The growth in the fourth quarter, 29.8 trillion won, was the largest quarterly gain on record. (Yonhap)
