Bank of Korea Governor Lee Ju-yeol stressed the need for corporate restructuring. 
 
Speaking to reporters on Thursday after freezing the nation’s key interest rate at one-and-a-half percent, Lee said restructuring needs to be promptly executed for insolvent firms as a preparatory move.
 
While citing uncertain conditions at home and abroad, Lee said his call for restructuring is not because the nation’s economy is in a serious state.
 
Lee said an overall hike in U.S.’s key interest rate is expected, and that companies with excessive debt will inevitably face difficulties.
 
Regarding improved domestic demand, the central bank governor said that although policy effects played a big part, an increase in households’ real income also contributed significantly.
 
Lee forecast that private consumption will continue to improve due to an increase in households’ purchasing power.
 
He said private consumption is expected to continue its growth, taking into account the improving labor market and likely increase of households’ real purchasing power.