Financial Services Commission (FSC) Chairman Yim Jong-yong says that if South Korea raises its key rate by a quarter of a percentage point, it would increase the burden of interest payments on household debts by one-point-seven trillion won.
 
The FSC chief presented the projection while appearing on a KBS program on Sunday.
 
However, Yim added that the possible rate hike would not strike a blow to the domestic financial market because financial assets of households are much larger than household debt and the return on their financial assets will increase with the hike.
 
The FSC chief stressed that the nation will be capable of coping with possible rate hikes, citing that the proportion of fixed-interest loans will increase to 34 percent thanks to the steady reforms on household loans.
 
He added that the United States rate hike has already been reflected in the domestic market, but the government will closely monitor other external uncertainties.