Financial Supervisory Service(FSS) Governor Lee Bok-hyun says there is a possibility that household debt could expand at any time following the cut in the nation’s key interest rate. 

The financial regulator said Lee made the remark on Friday shortly after the Bank of Korea lowered its key lending rate by a quarter percentage point to three-point-25 percent. 

Lee said if risks surrounding household debt persist, the FSS will mobilize all supervisory methods necessary to promptly address such dangers. 

The FSS chief assessed that despite the rate cut, market rates are lower than the key rate, adding that financial market uncertainty remains high when considering increased market demand for funds. 

Lee vowed to actively push for the liquidation of insolvent businesses with auctions and public sales as efforts to dissolve strapped project finance companies may see delays with the latest rate cut.