Chang Yong-sung Discusses Financial Stability Risks Amid Rate Hikes

Chang Yong-sung stated that financial stability conditions are shaped by accumulating financial imbalances, improvements in sector-specific incomes, global market trends, and geopolitical risks. He also called for coordination between fiscal and financial authorities to assist vulnerable groups.

The remarks follow the central bank's decision to raise its benchmark interest rate by 25 basis points to 3.00% on August 27. Chang stressed that monetary and macroprudential policies must work together to prevent financial imbalances from worsening. The central bank is closely monitoring global financial markets, noting that changes in major central bank policies could affect capital flows and domestic financial conditions.