The government has assessed that in the event the U.S. raises its key interest rate over inflation pressure, the move could weigh heavily on South Korea’s household debt-holders. 

The government made the assessment on Monday during a meeting of economy-related ministers chaired by Finance Minister Hong Nam-ki. 

Participants agreed that the Joe Biden administration’s large-scale fiscal policy is boosting the global economy, adding that if it leads to a global economic recovery, South Korea’s exports would continue to enjoy growth. 

However, participants expressed concern about the possibility of inflation and a rise in key interest rates resulting from a rise in asset value around the world triggered by an increase in liquidity. 

They agreed to closely monitor the financial and foreign exchange markets both at home and abroad, and launch measures to stabilize the market in the event volatile factors arise.