SEOUL South Korea's financial firms are facing little contagion risk due to troubles at U.S. and Swiss banks, but some non-bank firms may have to deal with increased stress due to the sluggish property market, according to the country's central bank.
South Korean banks have been strictly supervised, and their exposure to bonds and stocks is at 18 per cent of total assets, compared to 57 per cent at the recently collapsed Silicon Valley Bank, it said.
The Bank of Korea's report said that the sluggish real estate market poses increased risk for some non-bank financial firms, as their exposure to property financing has risen sharply in recent years.
Credit card issuers, credit card issuers, credit card issuers, and payment guarantees have climbed 433 per cent over the past five years. For savings banks, which are classified as non-banks in Korea, that gain was 250 per cent, while at insurance companies it was 205 per cent.
In the past nine months, South Korea has fallen housing prices in the wake of aggressive monetary policy tightening both locally and globally to fight inflation.
The government has taken several steps to prevent a hard landing for the property market. The tax burden on home owners will be reduced by the latest step announced on Wednesday.