"Warnings for 'Leveraging All Assets' and 'Borrowing to Invest': Two Key Reasons from Bank of Korea Governor Lee Chang-yong"
Recently, Bank of Korea Governor Lee Chang-yong issued a strong warning regarding the practices known as 'leveraging all assets' (영끌) and 'borrowing to invest' (빚투). Recently, Bank of Korea Governor Lee Chang-yong issued a strong warning regarding the practices known as 'leveraging all assets' (영끌) and 'borrowing to invest' (빚투). He highlighted the risks associated with these strategies given the current real estate market conditions and government policies. This blog post explores the reasons behind his warnings and the context in which they were made. Bank of Korea Governor Lee Chang-yong has recently issued a crucial warning about the risks associated with ‘leveraging all assets’ and ‘borrowing to invest’ strategies. He provided two primary reasons for his caution: 1. Government Housing Supply Measures: Governor Lee referred to the government's housing supply policies, particularly the large-scale housing supply plans announced in the August 8 rea...